By our reporter
Less than 48 hours after President Bola Ahmed Tinubu announced that Nigeria had met its 2025 revenue target ahead of schedule and would no longer engage in borrowing, the Federal Government has initiated steps to secure a new $1.75 billion loan from the World Bank.
In a national address delivered on September 2, President Tinubu stated that the country’s economic performance had exceeded expectations, with revenue goals already achieved by August. He also declared that Nigeria had stopped borrowing from local banks, highlighting this as a sign of improved financial discipline and growing non-oil revenue.
“We have achieved our revenue target for the year as early as August. We are no longer borrowing from local banks. Our economy is stabilizing,” he said.
However, recent reports have shown that the government is in discussions with the World Bank to access new external financing totaling $1.75 billion. The proposed loan is intended to support several development projects in sectors such as agriculture, health, education, and digital infrastructure.
Among the projects under consideration is a $500 million initiative known as the Nigeria Sustainable Agriculture Value Chains for Growth project. According to publicly available documents from the World Bank, the project is in its concept phase, with a tentative approval date set for December 11, 2025.
Other parts of the loan are expected to be allocated to public sector reforms, energy development, and expanding access to internet services in rural and underserved areas.
The timing of this new loan application has raised questions among Nigerians, especially given the president’s recent statements. While the president’s remarks appeared to focus on halting domestic borrowing, the fresh pursuit of foreign loans has led to public concern over the government’s borrowing strategy and fiscal transparency.
Analysts argue that although borrowing from international institutions like the World Bank can help fund critical infrastructure and development, it must be done with a clear repayment plan and concrete results. Without these, new debt could deepen the country’s financial challenges in the future.
Nigeria’s total public debt is estimated to have reached over 121 trillion naira in 2025, with a substantial portion owed to external creditors. While government revenue has improved slightly in recent months, it remains insufficient to meet all fiscal obligations without borrowing.
The Federal Government is expected to complete the World Bank loan application process over the next few months, after which the bank will determine whether to approve the funding.
Despite the president’s optimistic tone about Nigeria’s financial independence, the move to acquire more external loans suggests that the country’s economic recovery remains fragile and still requires significant financial support from international partners.
