The World Bank is set to approve a $2.2 billion loan for Nigeria in 2025, funding six key projects in education, health, digital infrastructure, and economic resilience. While aimed at development, concerns over Nigeria’s rising debt persist as the country remains the third-largest borrower from the World Bank’s IDA.
The World Bank is set to approve a $2.2 billion loan for Nigeria in 2025, targeting six key projects aimed at economic resilience, education, health, and digital infrastructure. The funding, which will be released in phases, underscores the global lender’s commitment to supporting Nigeria’s development amid ongoing fiscal challenges.
According to the World Bank’s project list, the first tranche of $500 million for the Community Action for Resilience and Economic Stimulus Programme is expected by March 17. Later in the month, the institution will approve $552 million for the HOPE for Quality Basic Education for All initiative and $800 million for Accelerating Nutrition Results in Nigeria 2.0. Additional projects include $300 million for the Solutions for the Internally Displaced and Host Communities Project in July and another $300 million for the Health Security Programme in August. The Building Resilient Digital Infrastructure for Growth (BRIDGE) initiative will also receive $500 million after approval in September.
While some of these projects are still in the early concept review phase, others have progressed to negotiations. The latest funding follows the World Bank’s $1.5 billion loan to Nigeria in 2024, aimed at stabilizing the economy. However, concerns persist over Nigeria’s rising debt burden, with the country remaining the third-largest borrower from the World Bank’s International Development Association (IDA). As of December 2024, Nigeria’s loan exposure stood at $16.8 billion, raising questions about the long-term sustainability of external borrowing.
Economic analysts have urged the Nigerian government to ensure that the funds are used effectively to drive growth and reduce poverty. Meanwhile, citizens remain divided, with some seeing the loan as a necessary boost to critical sectors, while others worry about mounting debt obligations.
