Nigeria’s debt exposure to the World Bank climbed sharply in 2025 as new data from the Debt Management Office showed an increase of $2.08bn within a single year. The figure rose from $17.81bn in 2024 to $19.89bn by December 31, 2025, marking an 11.7 per cent jump that reflects stronger borrowing activity from multilateral lenders.
The Debt Management Office report showed that the rise came mainly from the International Development Association and the International Bank for Reconstruction and Development. Nigeria’s IDA obligations grew from $16.56bn to $18.51bn within the year, adding $1.94bn to the debt stock. At the same time, IBRD exposure increased from $1.24bn to $1.38bn, reflecting an additional $141.84m.
This growth pushed the World Bank’s share of Nigeria’s total external debt to 38.36 per cent by the end of 2025. However, this share slightly declined compared to 38.90 per cent in 2024 because other debt categories expanded faster during the period.
Nigeria’s total external debt rose more aggressively by $6.08bn, reaching $51.86bn in 2025 from $45.78bn in 2024. Commercial and project-related loans contributed heavily to this surge, while Eurobond obligations also increased from $17.32bn to $18.55bn. As a result, multilateral debt climbed to $23.85bn, while bilateral debt moved up to $6.72bn.
The data highlights Nigeria’s continued dependence on concessional and semi-concessional financing, especially from the World Bank. This trend continues as fiscal pressure remains tight and access to cheaper commercial funding stays limited.
Economists argue that borrowing from institutions like the World Bank remains relatively cheaper due to low interest rates and long repayment periods. However, they also stress that outcomes depend on how effectively the funds are deployed.
Lagos-based economist Adewale Abimbola noted that borrowing itself is not the core issue. He explained that the key challenge lies in how the loans translate into real development. He added that well-structured projects can support growth if properly executed.
Development economist Dr Aliyu Ilias raised concerns about Nigeria’s growing debt profile. He warned that rising debt servicing costs continue to reduce fiscal space for capital projects. According to him, this trend is already affecting public service delivery and limiting economic expansion.
Overall, Nigeria’s rising World Bank debt signals deeper questions about fiscal sustainability, revenue generation, and long-term economic planning as external obligations continue to grow.
