By Ajibola Olaide, JKNewsMedia Reporter
RISING LOAN approvals, ongoing negotiations and phased disbursements across multiple sectors are set to push World Bank lending to Nigeria to $9.65 billion between 2023 and 2025 by the end of this year.
The projected figure covers loans from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) only, based on an analysis of data published on the World Bank website.
When grants are included, total World Bank support within the three-year period rises to about $9.77 billion, as reported by The PUNCH newspaper.
The IBRD provides loans on commercial or near commercial terms to middle income and creditworthy low-income countries, while the IDA offers highly concessional loans and grants to the world’s poorest nations.
The data reflects a steady build-up of commitments as government officials advance programmes in digital infrastructure, social protection, power, education and health, while emphasising the concessional nature of the borrowings.
An additional $500 million facility is expected on December 19, 2025, under the Fostering Inclusive Finance for MSMEs in Nigeria project.
The operation is being prepared for board consideration and will be implemented through the Development Bank of Nigeria (DoN).
Borrowing under the administration of President Bola Tinubu began with $2.7 billion in loans in 2023 across four major projects.
Financing that year focused on power sector recovery, renewable energy access, girls’ education and women’s economic empowerment.
Also, the Nigeria Distributed Access (NDA) through Renewable Energy Scale (RES) up project received $750 million in IDA financing to expand private sector led clean energy access.
Another $700 million in IDA credit was approved for girls’ secondary education in participating states.
Also, Women’s economic empowerment attracted $500 million through the Nigeria for Women Programme Scale Up.
The AF Power Sector Recovery operation also received $449 million in IBRD financing and $301 million in IDA funding to improve electricity supply reliability and restore financial sustainability in the sector.
No grant components were included in 2023, leaving the entire amount as loans.
Loan volumes rose sharply in 2024 as new approvals reached %4.25 billion, representing a 57.4 per cent increase compared with the previous year.
The rise was driven mainly by two policy-based operations and three separate $500 million IDA investment packages.
The Nigeria Reforms for Economic Stabilisation to Enable Transformation programme delivered $1.5 billion in loans, split evenly between the two lending arms, as the government sought fiscal space and protection for vulnerable populations during ongoing reforms.
A further $750 million loan from the IBRD was approved for the NG Accelerating Resource Mobilisation Reforms programme to boost non-oil revenues and protect oil and gas receipts.
The World Bank also approved $500 million in IDA funding each for rural road access, primary healthcare strengthening and dam safety and irrigation programmes.
The primary healthcare programme included a $70 million grant, lifting total World Bank support for 2024, including grants, to about $4.32 billion.
For 2025, the data shows $2.695 billion in loans at different stages of project processing alongside $52.18 million in grants.
In sum, nine operations have been identified across financial inclusion, digital broadband, health, education, social protection and institutional capacity.
The largest facilities include three separate $500 million IDA packages for broadband expansion, basic education and livelihood support for poor and vulnerable households.
Health security, nutrition and support for internally displaced communities account for another $630 million, while procurement standards receive $65 million.
A $400 million IBRD component is included for the MSME finance programme, alongside a $100 million IDA portion as the Central Bank of Nigeria (CBN) is also set to receive a $6.8 million grant to strengthen technology enabled oversight of the banking sector and deepen understanding of payment and remittance systems.
Compared with 2024, the 2025 loan pipeline represents a decline of about 36.6 percent, broadly aligning with the $2.7 billion recorded in 2023.
Across the three years, IDA loans account for about $7.30 billion, while IBRD loans contribute roughly $2.35 billion.
Grants total $122.19 million, rising from zero in 2023 to $70.01 million in 2024 before easing to $52.18 million in 2025.
Additionally, separate data earlier showed that Nigeria’s stock of IDA loans rose to $18.5 billion, making it the largest borrower in Africa and the third largest globally.
Finally, unaudited financial statements for the third quarter of 2025 confirmed the ranking, following an increase from $17.1 billion in September 2024 to $18.5 billion in September 2025.
Data from the Debt Management Office (DMO) placed Nigeria’s external debt at $46.98 billion as of June 30, 2025, adding that the World Bank Group (WBG) accounted for $19.39 billion, comprising $18.04 billion from the IDA and $1.35 billion from the IBRD.
