Nigeria’s debt to the World Bank rose by $2.08bn in one year to $19.89bn as of December 31, 2025, according to an analysis of external debt stock data released by the Debt Management Office (DMO).
The figure represents an 11.7 per cent increase from the $17.81bn owed to the global lender as of December 31, 2024.
The World Bank debt comprises loans from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
IDA provides concessional grants and loans to low-income countries, while IBRD provides financial products and policy advice mainly to middle-income and creditworthy developing countries.
DMO data showed that Nigeria’s IDA debt rose from $16.56bn in 2024 to $18.51bn in 2025, an increase of $1.94bn or 11.73 per cent.
IBRD exposure also increased from $1.24bn to $1.38bn, representing an increase of $141.84m or 11.41 per cent.
The increase means World Bank loans accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86bn as of the end of 2025.
This was slightly lower than the 38.90 per cent share recorded in 2024, when total external debt stood at $45.78bn.
Although the World Bank remained Nigeria’s single largest external creditor group, its share of total external debt declined marginally because other debt categories grew faster, especially commercial and syndicated project loans.
The country’s total external debt rose by $6.08bn, or 13.27 per cent, from $45.78bn in 2024 to $51.86bn in 2025.
The World Bank accounted for about 34.3 per cent of that increase, making it one of the major contributors to the country’s external debt growth during the year.
However, the largest jump came from commercial/project-related obligations, which rose mainly due to syndicated project loans, while Eurobond debt also increased from $17.32bn to $18.55bn.
Multilateral debt as a whole rose from $22.32bn to $23.85bn, while bilateral debt rose from $6.09bn to $6.72bn.
The data indicate that Nigeria’s external borrowing profile remains heavily tilted towards multilateral lenders, with the World Bank alone accounting for more than four-fifths of the multilateral debt stock in 2025.
This reflects the Federal Government’s continued reliance on concessional and semi-concessional financing, especially from IDA, amid tight fiscal conditions, high debt-service costs and limited access to cheaper market-based funding.
Economists warn that the rising loan pipeline, while potentially beneficial for long-term development, could deepen fiscal pressures if not matched with stronger domestic revenue mobilisation and prudent expenditure management.
Commenting on the development, a Lagos-based economist, Adewale Abimbola, said loans from multilateral institutions such as the World Bank are largely concessionary, with interest rates typically below market levels and longer repayment tenors.
He noted that the critical question is not whether the country should be borrowing, but whether the loans are structured and deployed effectively. “If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” Abimbola explained. “Borrowing isn’t bad; what matters is utilisation.”
Abimbola stressed that the economic impact of such loans depends on how well they are channelled into projects that can generate sustainable growth, strengthen revenue, and improve public services over time.
A development economist and Chief Executive Officer of CSA Advisory, Dr Aliyu Ilias, had recently expressed strong reservations about Nigeria’s rising debt profile in light of the World Bank’s fresh commitments.
While acknowledging that borrowing is not inherently bad for an economy, he questioned the rationale for taking on more debt at a time when the government claims to have higher revenues.
According to him, the impact of the current borrowing spree is being felt in reduced public service delivery, particularly in capital expenditure, as debt servicing now consumes a significant portion of available revenue.
