Nigeria’s World Bank Debt Rises By $2.08bn In 2025

Nigeria’s debt exposure to the World Bank increased by $2.08 billion in 2025, reaching $19.89 billion as of December 31, according to data released by the Debt Management Office.
The figures represent an 11.7 per cent increase from the $17.81 billion recorded at the end of 2024, underscoring the federal government’s growing reliance on multilateral financing to support development projects and ease fiscal pressures.
A breakdown of the data showed that most of the debt came from the International Development Association, which provides low-interest loans and grants to developing countries.
Nigeria’s obligations to the IDA rose by $1.94 billion within the year, increasing from $16.56 billion in 2024 to $18.51 billion in 2025.
Debt owed to the International Bank for Reconstruction and Development also increased moderately from $1.24 billion to $1.38 billion during the same period.
Despite the increase, the World Bank’s share of Nigeria’s external debt declined slightly to 38.36 per cent from 38.90 per cent in 2024, reflecting faster growth in other borrowing sources including commercial loans and syndicated project financing.
Nigeria’s total external debt stock climbed by $6.08 billion year-on-year to $51.86 billion.
Eurobond debt increased to $18.55 billion from $17.32 billion, while total multilateral debt rose to $23.85 billion from $22.32 billion.
Bilateral debt also grew to $6.72 billion from $6.09 billion.
The latest figures reaffirm the World Bank’s position as Nigeria’s largest single external creditor and the dominant source of the country’s concessional borrowing.
Economists say the trend reflects Nigeria’s limited access to cheaper market financing and the relative attractiveness of concessional loans, which offer lower interest rates and longer repayment periods.
However, analysts have continued to raise concerns over the sustainability of the country’s rising debt profile, warning that weak revenue generation and persistent fiscal deficits could increase pressure on public finances.