NIGERIA TO GET $1.75BN WORLD BANK LOAN FOR AGRICULTURE, HEALTH, OTHERS

Nigeria to Get $1.75bn World Bank Loan for Agriculture, Health, Others

The Federal Government plans to borrow more despite a 40.5 per cent rise in revenue in the first eight months of 2025. Bayo Onanuga, Special Adviser to the President on Information and Strategy, 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.”

Non-oil earnings made up 75 per cent of collections. Yet, funding gaps persist, with indigenous contractors recently protesting over N4tn in unpaid 2024 project claims.

Although President Bola Tinubu had declared Nigeria would “no longer rely on borrowing to fund its budget,” the government is set to secure $1.75bn in World Bank loans this year for agriculture, digital infrastructure, health, and MSMEs. Projects include Agricultural Value-Chains for Growth ($500m), Digital Infrastructure ($500m), Health Security Programme Phase II ($250m), and Inclusive Finance for MSMEs ($500m).

Economists are split. Adewale Abimbola said, “If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea. Borrowing isn’t bad; what matters is utilisation.”

But Dr Aliyu Ilias warned that debt has grown from N87tn under Buhari to about N149tn under Tinubu despite revenue surpluses, while Dr Muda Yusuf cautioned, “Without a strong cash flow to meet repayment schedules, Nigeria risks falling into a vicious cycle of borrowing to service existing loans.”

The Debt Management Office reported Nigeria’s World Bank debt rose to $18.23bn by March 2025, now making up 81.2 per cent of the country’s multilateral debt stock.

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