Nigeria is strengthening its financial footing with a surge in multilateral financing and a significant rise in external reserves, as reported by Punch and Nairametrics.
Between 2023 and 2025, World Bank loans to the country are projected to reach $9.65 billion, with total support, including grants, amounting to about $9.77 billion.
The loans, covering only International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) facilities, reflect growing investment across key sectors, from energy and education to health and social protection.
The Federal Government is also preparing to secure an additional $500 million facility under the Fostering Inclusive Finance for MSMEs in Nigeria project, scheduled for Board consideration on December 19, 2025.
This initiative will be implemented through the Development Bank of Nigeria.
The current borrowing cycle under President Bola Tinubu’s administration began in 2023 with $2.7 billion in loans across four major initiatives.
That year, financing focused on power sector recovery, renewable energy expansion, girls’ education, and women’s economic empowerment.
Notable projects included the Nigeria Distributed Access through Renewable Energy Scale-up, which received $750 million in IDA financing to expand private sector-led clean energy; the Girls’ Secondary Education programme, granted $700 million in IDA credit; and the Nigeria for Women Programme Scale-Up, which attracted $500 million in IDA support.
The AF Power Sector Recovery initiative received $449 million in IBRD financing and $301 million in IDA funding to enhance electricity supply reliability and restore financial stability. No grants were recorded in 2023, so the entire amount was loan-based.
Loan approvals surged sharply in 2024 to $4.25 billion, a 57.4 percent increase from 2023.
This rise was driven by two policy-based operations and three $500 million IDA investment packages.
The Nigeria Reforms for Economic Stabilisation to Enable Transformation programme provided $1.5 billion in loans, split evenly between IBRD and IDA, to create fiscal space and protect vulnerable populations.
Another $750 million IBRD loan supported the NG Accelerating Resource Mobilisation Reforms programme to boost non-oil revenues.
Additional IDA funding of $500 million each was approved for rural road access, primary healthcare strengthening, and dam safety and irrigation programmes.
The primary healthcare programme included a $70 million grant, bringing total World Bank support for 2024 to about $4.32 billion.
For 2025, Nigeria’s loan pipeline stands at $2.695 billion, alongside $52.18 million in grants.
Nine operations have been identified across financial inclusion, digital broadband, health, education, social protection, and institutional capacity.
The largest allocations include $500 million each for broadband expansion, basic education, and livelihood support for vulnerable households.
Health security, nutrition, and support for internally displaced communities account for $630 million, while procurement standards receive $65 million from IDA.
The MSME finance programme includes a $400 million IBRD component and a $100 million IDA portion.
Additionally, the Central Bank of Nigeria is to receive a $6.8 million grant to strengthen technology-enabled banking oversight and enhance understanding of payment and remittance systems.
Compared with 2024, the 2025 loan pipeline reflects a decline of 36.6 percent but remains broadly consistent with 2023 levels.
Across the three years, IDA loans account for roughly $7.30 billion, IBRD loans contribute $2.35 billion, and grants add $122.19 million, rising from zero in 2023 to $70.01 million in 2024 before easing to $52.18 million in 2025.
Complementing this inflow of multilateral financing, Nigeria’s external reserves have surged past the $45 billion mark, reaching $45.04 billion, according to the latest data from the Central Bank of Nigeria (CBN).
This represents the strongest reserves position the country has recorded in six years and a substantial increase from previous levels.
Historical data shows that the last time Nigeria’s reserves reached this level was on July 23, 2019, when they stood at $45.04 billion.
Earlier in 2025, reserves climbed to $42.03 billion on September 19, marking a six-year high. The nearly $5 billion increase over a short period signals improved inflows, likely driven by crude oil earnings, Eurobond-related transactions, and multilateral financing, including the World Bank loans.
Stronger reserves enhance the CBN’s ability to intervene in the foreign exchange market and help stabilize the naira amid global economic uncertainties. Taken together, the surge in World Bank financing and the rise in external reserves underline Nigeria’s improving financial position, providing the government with the resources to fund development projects, protect vulnerable populations, and strengthen economic resilience.
