Nigeria’s debt to the World Bank’s concessional lending arm, the International Development Association (IDA), surged to $18.7 billion as of December 31, 2025 up $1.9 billion (11.3%) from $16.8 billion at the end of 2024.
Nigeria now trails only Bangladesh ($23.0 billion) and Pakistan ($19.4 billion) among the top IDA borrowers. Together, the 10 largest borrowers account for 60% of IDA’s total exposure.
Nigeria’s total external debt stood at $46.98 billion as of mid-2025, with the World Bank Group accounting for $19.39 billion of that roughly 41.3% of all external debt. This highlights how dominant the World Bank is in Nigeria’s external financing.
More borrowing ahead: The World Bank plans to approve a new $500 million loan to Nigeria in March 2026 for a sustainable agriculture project (AGROW), aimed at improving food production, strengthening value chains, and creating jobs.
Domestic impact: Nigeria’s 36 states paid a combined ₦455.38 billion in foreign debt service deductions in 2025, up 25.77% from ₦362.08 billion in 2024 meaning a growing share of state allocations is being automatically deducted to service external loans.
Economist Dr. Muda Yusuf warned that without strong revenue to meet repayment schedules, Nigeria risks falling into a cycle of borrowing to service existing loans. He stressed that Nigeria should be cautious about foreign loans due to exchange-rate risks, noting that excessive foreign borrowing could pressure reserves and further weaken the naira.
