Nigeria's debt to the World Bank climbed to $19.89bn by the end of 2025, driven by increased reliance on multilateral funding as the nation's total external debt hit $51.86bn.
Nigeria’s debt to the World Bank saw a significant climb in 2025, adding $2.08bn to the nation’s external obligations over the course of the year.. Data released by the Debt Management Office shows the total exposure reached $19.89bn by December 31, compared to the $17.81bn recorded at the end of the previous year.
This growth in debt, which spans both the International Development Association and the International Bank for Reconstruction and Development, marks an 11.7 per cent increase for the period.. While these loans help navigate tight fiscal conditions, they now constitute a substantial portion of the country’s overall external liabilities.
This trend underscores the federal government’s persistent reliance on multilateral financing to sustain operations, as access to alternative, cheaper market-based capital remains challenging.
Looking closer at the figures, the International Development Association debt climbed by $1.94bn, while the International Bank for Reconstruction and Development saw an increase of $141.84m.. Together, these obligations represent 38.36 per cent of the total external debt stock, which surged to $51.86bn by year-end.
While multilateral lenders like the World Bank are often preferred due to lower interest rates and longer repayment windows, the rapid expansion of debt across commercial and syndicated channels has also pushed the total external burden higher.. The shift reflects a broader strategy of borrowing to cover fiscal gaps and infrastructure needs.
Experts have weighed in on whether this accumulation of debt is sustainable in the long term.. Adewale Abimbola, an economist based in Lagos, notes that borrowing is not inherently problematic if the capital is deployed toward projects that generate tangible revenue.. The core issue remains the efficiency of project execution rather than the simple act of securing credit.
Conversely, some analysts remain concerned about the compounding pressure these obligations place on the national budget.. Dr.. Aliyu Ilias of CSA Advisory pointed out that heavy debt servicing costs currently consume a large share of revenue, which potentially hinders the government’s ability to fund essential public services.
Ultimately, the rise in debt serves as a stark reminder of the government’s delicate balance between fueling development through foreign credit and managing the mounting pressure of servicing those very loans amid current economic constraints.