Nigeria’s external debt to the World Bank rose by $2.08 billion in 2025, reaching $19.89 billion at the end of the year, according to the Debt Management Office’s (DMO) latest external debt stock report.
The increase represents an 11.7 % rise from the $17.81 billion recorded on 31 December 2024. The World Bank exposure comprises two arms: the International Development Association (IDA), which offers concessional grants and low‑interest loans to low‑income countries, and the International Bank for Reconstruction and Development (IBRD), which provides financial products and policy advice mainly to middle‑income and creditworthy developing economies.
DMO data show IDA borrowing grew from $16.56 billion in 2024 to $18.51 billion in 2025, a $1.94 billion rise (11.73 %). IBRD commitments increased from $1.24 billion to $1.38 billion, up $141.84 million (11.41 %). Together, World Bank loans accounted for 38.36 % of Nigeria’s total external debt of $51.86 billion at the end of 2025, slightly below the 38.90 % share recorded a year earlier when total external debt stood at $45.78 billion.
Overall external debt rose by $6.08 billion, or 13.27 %, from $45.78 billion in 2024 to $51.86 billion in 2025. The World Bank contributed roughly 34.3 % of that increase, making it a major driver of the debt expansion. The largest share of the growth, however, came from commercial and syndicated project loans, while Eurobond issuances rose from $17.32 billion to $18.55 billion. Multilateral debt climbed from $22.32 billion to $23.85 billion, and bilateral debt rose from $6.09 billion to $6.72 billion.
The data indicate that multilateral financing remains dominant in Nigeria’s borrowing profile, with the World Bank alone representing more than four‑fifths of the multilateral debt stock in 2025. This underscores the federal government’s reliance on concessional and semi‑concessional sources, particularly IDA, amid tight fiscal conditions, high debt‑service costs and limited access to cheaper market‑based funding.
Economists caution that while the expanding loan pipeline can support long‑term development, it may intensify fiscal pressures if not matched by stronger domestic revenue mobilisation and prudent expenditure management. Lagos‑based economist Adewale Abimbola noted that World Bank financing is typically concessional, with lower interest rates and longer tenors, and emphasized that the key issue is the effective structuring and deployment of loans into viable projects. “Borrowing isn’t bad; what matters is utilisation,” he said.
Conversely, Dr Aliyu Ilias, chief executive of CSA Advisory, expressed reservations about the growing debt stock. He argued that increasing borrowing contradicts the government’s claim of higher revenues and is already affecting public service delivery, particularly capital expenditures, as debt servicing consumes a larger share of available funds.
The latest figures highlight the balancing act facing Nigeria: sustaining development financing while avoiding unsustainable debt accumulation. Continuous monitoring of debt composition and disciplined fiscal policy will be crucial as the country navigates its external borrowing strategy.
