Nigeria’s debt to the World Bank has increased significantly, reaching $19.89 billion as of December 31, 2025. This marks a rise of $2.08 billion compared to the $17.81 billion recorded at the end of 2024. The increase represents an 11.7 percent growth within just one year, according to data released by the Debt Management Office (DMO).
The World Bank loans owed by Nigeria come from two main sources: the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). The IDA mainly supports low-income countries by offering loans with low interest rates and long repayment periods, while the IBRD provides financial assistance and policy advice to developing nations that have stronger credit profiles.
A closer look at the figures shows that Nigeria’s debt to the IDA rose from $16.56 billion in 2024 to $18.51 billion in 2025. This is an increase of $1.94 billion, or 11.73 percent. Similarly, the country’s debt to the IBRD grew from $1.24 billion to $1.38 billion, adding about $141.84 million, which is an 11.41 percent rise.
Overall, loans from the World Bank now make up 38.36 percent of Nigeria’s total external debt, which stands at $51.86 billion. Although this is slightly lower than the 38.90 percent recorded in 2024, the World Bank remains one of the largest contributors to Nigeria’s foreign debt.
Nigeria’s total external debt also increased during this period, rising by $6.08 billion from $45.78 billion in 2024 to $51.86 billion in 2025. This represents a 13.27 percent increase. The World Bank alone accounted for about one-third of this growth, showing its major role in the country’s borrowing activities.
However, the biggest increase in debt came from commercial and project-related loans, especially syndicated loans used for major projects. In addition, Eurobond debt rose from $17.32 billion to $18.55 billion. Other forms of borrowing also increased, with multilateral debt going up from $22.32 billion to $23.85 billion, and bilateral debt rising from $6.09 billion to $6.72 billion.
The data highlights Nigeria’s strong dependence on multilateral lenders, especially the World Bank, which now makes up a large portion of such loans. This trend reflects the government’s preference for loans with lower interest rates and longer repayment periods, particularly during a time of economic challenges, high debt servicing costs, and limited access to cheaper funding options.
Experts have shared mixed opinions about the rising debt. Some economists believe that borrowing itself is not necessarily harmful, especially when loans are used for productive projects that can boost economic growth and generate revenue. They argue that concessional loans, like those from the World Bank, are generally more manageable due to their favorable terms.
However, others are concerned about the growing debt burden. They warn that if the funds are not used effectively, the country could face more financial strain. There are also worries that increasing debt servicing costs are reducing the government’s ability to invest in important sectors like infrastructure and public services.
