The Federal Government plans to boost borrowing despite a 40.5% revenue surge in the first eight months of 2025, largely driven by non-oil revenue collections. According to Special Adviser to the President on Information and Strategy, Bayo Onanuga, total collections hit ₦20.59tn, up from ₦14.6tn in the same period of 2024, with non-oil revenues contributing 75% of the total.
While revenue performance has been strong, Nigeria still faces funding gaps in infrastructure and capital spending. On Wednesday, members of the All Indigenous Contractors Association staged a protest at the Ministry of Finance in Abuja, demanding payment of about ₦4tn for projects executed in 2024.
To bridge financing shortfalls, the government intends to borrow locally and externally, despite President Bola Tinubu’s earlier remarks that Nigeria had already met its 2025 revenue target and would reduce reliance on borrowing.
World Bank Loans in the Pipeline
The World Bank is expected to approve $1.75bn in loans before year-end to support agriculture, health, digital infrastructure, and MSMEs.
Nigeria Sustainable Agricultural Value-Chains for Growth – $500m
Focus: Agricultural productivity and rural development
Stage: Concept Review; Approval: Dec 11, 2025
Building Resilient Digital Infrastructure for Growth – $500m
Focus: Digital economy expansion
Stage: Begin Negotiation; Approval: Oct 31, 2025
Health Security Programme (WCA, Phase II) – $250m
Focus: Health systems and emergency preparedness
Stage: Begin Negotiation; Approval: Sept 30, 2025
Fostering Inclusive Finance for MSMEs – $500m
Focus: SME access to finance
Stage: Concept Review; Approval: Dec 18, 2025
Over the last two years, the World Bank has approved $8.4bn across 15 projects in Nigeria, spanning energy, education, healthcare, and governance.
Rising Debt Profile
Data from the Debt Management Office shows Nigeria’s total debt to the World Bank rose to $18.23bn as of March 2025, up from $17.81bn in December 2024. The World Bank now accounts for 39.7% of Nigeria’s external debt and over 81% of its multilateral debt.
Nigeria’s overall debt stock has grown from ₦87tn under Buhari (2023) to about ₦149tn under Tinubu, with fears it could hit ₦180tn.
Expert Reactions
Adewale Abimbola (Economist, Lagos):
Loans from the World Bank are concessionary, with low interest and long repayment. Borrowing isn’t inherently bad, he argued, but effective utilisation is key.
Dr. Aliyu Ilias (CSA Advisory):
Expressed concern over the rising debt despite reported revenue surpluses from subsidy removal, Customs, and FIRS. Warned that debt servicing crowds out capital spending, worsens inflation, and pressures the naira.
Dr. Muda Yusuf (Centre for the Promotion of Private Enterprise):
Noted that deficit financing is standard globally, but cautioned that debt sustainability depends on Nigeria’s ability to generate sufficient revenue. He stressed that foreign loans carry exchange rate risks and should be managed carefully.
Bottom Line:
Nigeria’s revenue has grown significantly, yet persistent funding gaps and heavy debt servicing are forcing the government to turn to new World Bank loans. Economists are split — some see concessional borrowing as a useful tool if invested wisely, while others warn that the rising debt burden could undermine growth and fiscal stability.
