Nigeria’s debt to World Bank surged by $2.08bn in 2025 – Report

Nigeria's external debt profile continues to be a subject of concern, with the latest figures from the Debt Management Office revealing a significant increase in borrowing from the World Bank. As reported by The Punch, the nation's debt to the global lender surged by $2.08 billion in 2025, pushing the total owed to $19.89 billion.

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Nigeria’s debt to the World Bank rose by $2.08bn in one year to $19.89bn as of December 31, 2025, according to an analysis of external debt stock data released by the Debt Management Office.

This upward trend, an 11.7% increase from 2024, underscores Nigeria's continued reliance on multilateral institutions for financing. While the World Bank remains our largest single external creditor group, its proportion of the total external debt saw a marginal decline. This is not necessarily a sign of reduced borrowing from the World Bank, but rather an indication that other debt categories, particularly commercial and syndicated project loans, have grown at a faster pace.

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The figure represents an 11.7 per cent increase from the $17.81bn owed to the global lender as of December 31, 2024.

From a Nigerian economic standpoint, this escalating debt, especially from multilateral sources like the World Bank's IDA and IBRD, warrants careful management. Economists' warnings about deepening fiscal pressures if rising loan pipelines are not matched with robust domestic revenue mobilization and prudent expenditure are particularly relevant. While these loans may be crucial for long-term development projects, the challenge lies in ensuring they translate into sustainable growth and do not become an unsustainable burden on future generations. The narrative here is one of balancing development needs with fiscal responsibility, a tightrope walk that defines Nigeria's economic policy.

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DMO data showed that Nigeria’s IDA debt rose from $16.56bn in 2024 to $18.51bn in 2025, an increase of $1.94bn or 11.73 per cent.