Nigeria is turning once again to the World Bank for financing, even as government revenues surged by over 40 per cent in the first eight months of 2025.
According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, revenue collections between January and August 2025 hit N20.59tn — up from N14.6tn in the same period of 2024. Non-oil revenues accounted for a dominant 75 per cent of the total inflows.
The Presidency said: “From January to August 2025, total collections reached N20.59tn, a 40.5 per cent increase from N14.6tn recorded in 2024. This strong performance aligns with projections, placing the government firmly on course to achieve its annual non-oil revenue target.”
But despite this boost, the government has signalled plans to bridge funding gaps in infrastructure and other key sectors with fresh borrowing. On Thursday, data from the World Bank showed that $1.75bn in new loans could be approved for Nigeria before year-end. The loans will support projects in agriculture, digital infrastructure, health, and finance.
Key among them is the Nigeria Sustainable Agricultural Value-Chains for Growth Project, which will receive $500m to drive productivity and rural development. Another \$500m will go to the **Building Resilient Digital Infrastructure for Growth Project**, with approvals expected by October 31, 2025. The **Health Security Programme in Western and Central Africa – Nigeria Phase II** will get \$250m by September 30, while \$500m is earmarked for the Fostering Inclusive Finance for MSMEs in Nigeria Project**, due for approval on December 18.
This comes despite President Bola Tinubu’s assurance on Tuesday that Nigeria had already met its 2025 revenue target ahead of schedule and would no longer rely on borrowing to fund its budget.
According to an earlier report by Punch Online, the World Bank approved $8.40bn in new loans to Nigeria in just over two years, spreading across 15 projects in energy, education, healthcare, and governance.
With these latest commitments, Nigeria’s debt to the World Bank has risen to $18.23bn as of March 2025 — about 40 per cent of its external debt stock.
Economists are sharply divided on the implications. Lagos-based analyst Adewale Abimbola argued that concessional loans are not necessarily harmful if well deployed. *“If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,”* he said. *“Borrowing isn’t bad; what matters is utilisation.”*
But development economist Dr Aliyu Ilias warned that rising debt undermines fiscal stability. He recalled that Nigeria’s total debt stock stood at N87tn when President Muhammadu Buhari left office but has now ballooned to about N149tn under Tinubu, with fears it could hit N180tn.
“Given the claimed revenue surpluses, the Tinubu administration should not have needed to borrow within its first two years in office, let alone at the scale currently being witnessed,” Ilias argued.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, called for caution, stressing the importance of debt sustainability.
“Without a strong cash flow to meet repayment schedules, Nigeria risks falling into a vicious cycle of borrowing to service existing loans,” he said.
Meanwhile, domestic concerns persist. On Wednesday, local contractors under the All Indigenous Contractors Association of Nigeria protested at the Ministry of Finance headquarters in Abuja over unpaid arrears of N4tn for projects executed in 2024, highlighting the government’s struggle to balance rising revenues with heavy debt servicing obligations.
