Nigeria’s debt to the World Bank’s lending arm, the International Development Association (IDA), has risen to $18.7bn as of December 31, 2025.
New financial data show that Nigeria’s debt increased by $1.9bn in one year, from $16.8bn at the end of 2024. This represents an 11.3 per cent increase. The rise shows that Nigeria is relying more on concessional loans from international institutions as it faces financial pressure and limited government revenue.
Nigeria is now the third-largest borrower from the IDA, after Bangladesh with $23.0bn and Pakistan with $19.4bn. Together, the top 10 borrowing countries account for 60 per cent of the IDA’s total loan exposure.
The increase in Nigeria’s debt is mainly due to continued funding for projects in health, education and infrastructure under its partnership agreements with the World Bank. Although IDA loans come with low interest rates, long repayment periods and grace periods, they still add to Nigeria’s total external debt.
The IDA said it is important to carefully monitor countries’ loan exposure, including repayment schedules and future borrowing plans.
Overall, the IDA’s total loans outstanding rose to $226.4bn by December 31, 2025, up from $205.8bn a year earlier. The organisation provides loans, grants and guarantees to help poor and vulnerable countries meet their development needs.
Nigeria’s debt to the World Bank Group is higher than that of other major African borrowers such as Ethiopia and Tanzania.
Apart from the IDA, Nigeria also borrows from the International Bank for Reconstruction and Development (IBRD), another arm of the World Bank that lends to middle-income and creditworthy low-income countries.
According to Nigeria’s Debt Management Office, the country’s total external debt stood at $46.98bn as of June 30, 2025. Out of this, the World Bank Group accounted for $19.39bn — $18.04bn from IDA and $1.35bn from IBRD. This means the World Bank holds about 41.3 per cent of Nigeria’s external debt.
Economist Dr Muda Yusuf said borrowing is common worldwide and helps governments fund important projects.
However, he stressed that loans must be used wisely and tied to clear development goals. He warned that Nigeria must ensure it has enough revenue to repay its debts, or it may end up borrowing more money just to service existing loans.
He also advised caution with foreign loans because of exchange-rate risks. According to him, domestic debt is generally easier to manage. He said Nigeria must maintain discipline in managing its debt to avoid long-term financial problems.
