Nigeria’s Federal Government is moving ahead with plans to borrow another $1.75 billion from the World Bank, just days after proudly announcing that the country had surpassed its 2025 revenue target ahead of schedule.
The move has sparked fresh conversations about Nigeria’s debt strategy, as the government continues to celebrate a record jump in earnings while simultaneously leaning on external loans to close funding gaps.
Earlier this week, President Bola Tinubu revealed that the country had already beaten next year’s revenue projection, a feat he described as proof of improving fiscal discipline and stronger economic management.
According to figures released by the Presidency, Nigeria collected N20.59 trillion between January and August 2025, a sharp 40.5 per cent rise compared to N14.6 trillion within the same period last year.
Presidential aide Bayo Onanuga noted that non-oil revenue now makes up 75 per cent of the nation’s total earnings, a significant shift away from decades of oil dependence.
Despite these gains, officials have admitted that borrowing remains unavoidable. “Our income growth is encouraging, but Nigeria still faces funding gaps in key sectors like agriculture, health, and infrastructure,” a senior government source revealed. “External financing allows us to maintain momentum while avoiding disruptions to critical projects.”
Documents reviewed from the World Bank confirm that four major loan packages, totalling $1.75 billion, are in the pipeline for Nigeria before the end of 2025. The proposed facilities include:
$500 million for the Nigeria Sustainable Agricultural Value-Chains for Growth project, aimed at improving food production and rural livelihoods.
$500 million for a nationwide digital infrastructure expansion programme to boost connectivity and technology-driven growth.
$250 million for a health security initiative designed to strengthen epidemic preparedness.
$500 million for an inclusive finance programme targeting micro, small, and medium enterprises (MSMEs).
If approved, these loans will bring Nigeria’s new borrowings from the World Bank in the last two years to over $10 billion, underscoring the country’s ongoing reliance on external funding despite a rebound in domestic earnings.
Meanwhile, economic analysts warn that the government must balance its ambitious development agenda with sustainable debt management.
“Revenue growth is a positive sign, but we can’t spend beyond our means indefinitely,” said Abuja-based economist. “Borrowing should be strategic, targeted, and transparent, or it risks eroding the benefits of fiscal progress.”
The Ministry of Finance has yet to release an official statement on the timeline for the loans, but World Bank records indicate that several of the projects are already at advanced stages of appraisal and negotiation.
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