Nigeria’s World Bank Debt Rose by $2.08bn in 2025, Now Stands at $19.89bn

Nigeria’s debt to the World Bank grew by $2.08 billion in a single year, reaching $19.89 billion as of December 31, 2025 — an 11.7 per cent increase from the $17.81 billion owed at the end of 2024, according to an analysis of external debt stock data released by the Debt Management Office.

The World Bank is now Nigeria’s single largest external creditor group, accounting for 38.36 per cent of the country’s total external debt of $51.86 billion.

How the Debt Broke Down

The World Bank’s exposure to Nigeria comprises two arms. The International Development Association (IDA), which provides concessional loans to low-income countries, saw its Nigeria portfolio grow from $16.56 billion in 2024 to $18.51 billion in 2025 — an increase of $1.94 billion. The International Bank for Reconstruction and Development (IBRD) added $141.84 million, bringing its total to $1.38 billion.

In total, the World Bank accounted for roughly 34.3 per cent of Nigeria’s entire $6.08 billion increase in external debt during 2025. Other categories that grew faster include commercial and syndicated project loans, which diluted the World Bank’s share of total external debt slightly — from 38.90 per cent in 2024 to 38.36 per cent in 2025 — even as the absolute figure rose.

The Bigger Picture

Nigeria’s total external debt climbed from $45.78 billion to $51.86 billion in 2025 — a $6.08 billion or 13.27 per cent jump in one year. Domestically, Nigeria’s total public debt stock hit N159.28 trillion, with domestic borrowing now making up the larger share.

The DMO data lands as the federal government continues to defend its borrowing record, arguing that the loans are tied to infrastructure and development projects. Critics, however, point to the growing debt service burden — rising interest payments that consume a disproportionate share of government revenue — as the more pressing concern.

Sources: Punch, Nigerian Communications Week, Fairview Africa