Nigeria’s outstanding loans from the World Bank increased by $2.08bn within a year, reaching $19.89bn as of December 31, 2025, according to figures released by the Debt Management Office.
The new total marks an 11.7 per cent rise from the $17.81bn recorded at the end of 2024, underscoring the country’s continued reliance on multilateral funding to manage fiscal pressures.
A breakdown of the data shows that the bulk of the loans came through the bank’s concessional window, the International Development Association, which supports low-income countries with softer financing terms. Nigeria’s exposure to IDA climbed from $16.56bn in 2024 to $18.51bn in 2025, an increase of $1.94bn.
Borrowing from the International Bank for Reconstruction and Development, which provides financing to creditworthy developing nations, also rose modestly from $1.24bn to $1.38bn during the period.
Despite the increase, the World Bank’s share of Nigeria’s overall external debt dipped slightly. The lender accounted for 38.36 per cent of the country’s $51.86bn external debt stock at the end of 2025, compared to 38.90 per cent when total external debt stood at $45.78bn a year earlier. This marginal drop reflects faster growth in other borrowing categories, particularly commercial and syndicated project loans.
Overall, Nigeria’s external debt expanded by $6.08bn, or 13.27 per cent, over the year. World Bank financing represented roughly a third of that growth.
Further analysis shows that multilateral debt rose from $22.32bn to $23.85bn, while bilateral obligations increased from $6.09bn to $6.72bn. Eurobond liabilities also edged up from $17.32bn to $18.55bn, indicating a broader uptick in external financing across different sources.
The figures suggest that multilateral lenders remain central to Nigeria’s external borrowing structure, with World Bank facilities making up the majority of that segment. Analysts say this pattern reflects the government’s preference for concessional loans with longer repayment timelines amid high debt servicing costs and limited access to cheaper market funding.
Economists have noted that such borrowing can be beneficial if directed toward projects that strengthen revenue generation and long-term economic capacity. However, they caution that without improved domestic revenue mobilisation and disciplined spending, rising debt levels could place additional strain on public finances.
Financial experts argue that the impact of the loans will ultimately depend on how effectively they are deployed into productive sectors capable of supporting growth and improving service delivery.
