Nigeria’s debt burden rises again as Tinubu’s govt receives $750m fresh World Bank loan
Barring any unforeseen obstacle, the World Bank will, on Tuesday, September 30, 2025, approve two loan facilities totaling $750million for Nigeria, according to documents published on the bank’s official website. The funding is directed toward strengthening health security and expanding climate-resilient digital infrastructure.
The package includes $500million for the Building Resilient Digital Infrastructure for Growth in Nigeria (BRIDGE) project and $250million under the Health Security Programme in Western and Central Africa, Nigeria – Phase II, reports The PUNCH.
The BRIDGE initiative, led by the Federal Ministry of Communications, Innovation and Digital Economy, is designed to expand broadband access in underserved communities. With an estimated cost of $1.6billion, the project will be financed by a mix of concessional credit and private investment.
Communications and Digital Economy Minister, Dr. Bosun Tijani, described the programme as central to Nigeria’s digital transformation. “Over the past two years, we have worked tirelessly on what is arguably the most ambitious and foundational digital infrastructure project in Nigeria’s history, Project BRIDGE,” Tijani said in August while unveiling the technical design for a $2billion fibre-optic expansion plan.
According to him, the network will extend from 35,000 to over 125,000 kilometres, with seven national fibre rings, 37 city-level loops, 77 regional networks, and multiple edge data centres. The rollout will be managed through a Special Purpose Vehicle in which the Federal government will hold a 51 per cent equity stake.
The second facility, worth $250million, will be overseen by the Nigeria Centre for Disease Control and Prevention and the Federal Ministry of Finance. It aims to boost Nigeria’s capacity to prevent, detect, and respond to pandemics and other public health emergencies.
The World Bank said the health programme would “strengthen regional surveillance systems and emergency response mechanisms” across West and Central Africa, citing lessons from COVID-19 and other recent crises.
Nigeria has received increased World Bank support in recent years. Data from the bank shows that $8.4billion in new loans have been approved for the country between June 2023 and August 2025, covering 15 projects in health, energy, education, governance, and rural development.
Economists remain divided on the implications of continued borrowing. Lagos-based analyst Adewale Abimbola said, “Borrowing isn’t inherently bad. If it’s concessionary and tied to viable, revenue-generating projects, then it’s a smart move. The key is in implementation and accountability.”
But development economist and CEO of CSA Advisory, Dr. Aliyu Ilias, warned that Nigeria’s debt trajectory was unsustainable. “When former President Muhammadu Buhari left office, the debt stock was around N87trillion. Now, it’s approximately N149trillion, and projections suggest it could hit N180trillion,” he said.
He questioned the government’s reliance on loans despite higher revenues from tax collections and subsidy removal.
“Why are we borrowing more when we’re supposedly earning more? It’s clear the debt burden is crowding out funding for essential public services and capital projects,” Ilias added.
Figures from the Debt Management Office show Nigeria owes the World Bank $18.23billion as of March 31, 2025, accounting for nearly 40 per cent of the country’s external debt stock. The institution makes up over 81 per cent of Nigeria’s multilateral debt profile.
