In just 16 months under President Bola Tinubu, Nigeria has secured loans worth $6.45 billion from the World Bank, with the latest approval of $1.57 billion for various projects. This is part of a broader borrowing trend, as the international lender has approved a total of $24.088 billion in loans to Nigeria over the past five years. These funds are aimed at development projects across sectors like power, women empowerment, and renewable energy.
The World Bank’s latest financing includes $570 million for strengthening primary healthcare, $500 million for governance issues in education and health, and $500 million for dam safety and irrigation to combat climate change. While these loans target critical areas, they add to the growing national debt, which has raised concerns about Nigeria's escalating debt profile and its long-term economic sustainability.
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Nigerians have expressed frustration, particularly given long-standing issues like infrastructure decay and unemployment. Although some acknowledge the need for borrowing to support an outsized population, many argue that past loans have not delivered the intended results. Despite these concerns, the World Bank has continued approving loans annually since 2020, with more credit facilities expected by the end of 2024.
As Nigeria’s debt servicing expenses hit N6.04 trillion in the first half of 2024, up 68.8% from the previous year, experts warn that the government’s growing debt obligations could severely strain its financial resources, particularly as the naira devalues. The country currently owes the World Bank $15.59 billion as of March 2024.
