The Nigerian government, led by President Bola Tinubu, has borrowed a staggering $6.45 billion from the World Bank within the past 16 months. This comes after the recent approval of three new loans totaling $1.57 billion, earmarked for various projects across the country. With further loan approvals expected in the coming months, the total could rise even higher.

Since 2020, Nigeria has received 36 loans from the World Bank, amassing $24.088 billion. These funds are targeted at projects aimed at addressing critical sectors, such as infrastructure, education, and renewable energy. However, concerns over Nigeria’s growing debt burden are sparking public debates about the long-term sustainability of these financial commitments.

Several high-profile projects under Tinubu’s administration include $750 million for power sector reforms, $500 million for women’s empowerment, $700 million for girl’s education, and $750 million for renewable energy. Yet, the increasing reliance on external loans has left many Nigerians frustrated, as infrastructure decay and unemployment persist, despite these financial inflows.

Some citizens acknowledge that Nigeria’s large population and limited resources necessitate borrowing, but many question whether past loans have been effectively utilized. Critics point to the country’s spiraling debt, which, according to the Central Bank of Nigeria, has led to a 68.8% increase in debt servicing costs, rising from N3.58 trillion in 2023 to N6.04 trillion in the first half of 2024.

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The World Bank has remained a consistent partner, approving loans annually since 2020, including $6.36 billion in 2020 alone. Projects such as the Nigeria Rural Access and Agricultural Marketing Project ($510 million) and the COVID-19 response fund ($750 million) are just a few examples of where these loans have been directed.

Loan approvals fluctuated under former President Muhammadu Buhari, with $3.2 billion in loans approved in 2021 and $1.26 billion in 2022. In 2023, however, the Tinubu government saw approvals rise to $2.7 billion, supporting projects like the Nigeria Women Program Scale-up and renewable energy expansion. As of 2024, $3.82 billion in loans have already been approved, with further credit facilities anticipated by the year’s end.

On June 13, 2024, the World Bank announced a $2.25 billion package to bolster Nigeria’s economic stability, of which $751.88 million has already been disbursed. Another loan worth $500 million is expected by December 16, aimed at improving rural access and agricultural marketing.

Recent approvals include $1.57 billion to support health programs for women and children, address governance issues in education and healthcare, and improve infrastructure resilience against climate change. These projects aim to strengthen Nigeria’s human capital, enhance dam safety, and expand irrigation systems.

The World Bank’s commitment to supporting Nigeria continues, yet the mounting debt and rising debt-servicing obligations remain a challenge for the Tinubu administration as it seeks to balance development with economic stability.