Onome Amuge
Nigeria is set to secure fresh lifelines from the World Bank as the multilateral lender prepares to approve two major loans worth a combined $750 million on Tuesday, September 30, 2025. The financing, targeted at strengthening the country’s digital infrastructure and health security, showcases the country’s reliance on concessional borrowing to fund critical projects. But it also raises renewed questions about the sustainability of Nigeria’s rising debt stock.
According to documents on the World Bank’s website, the financing package includes a $500m facility for the Building Resilient Digital Infrastructure for Growth in Nigeria (BRIDGE) project and a $250m loan for the Health Security Programme in Western and Central Africa, Nigeria – Phase II. Both projects are in the World Bank’s active pipeline and are at advanced negotiation stages ahead of board approval.
The flagship BRIDGE project, led by the Federal Ministry of Communications, Innovation and Digital Economy, is designed to close Nigeria’s persistent broadband gaps. With an estimated cost of $1.6 billion, the World Bank’s concessional loan will provide a substantial anchor, while the balance is expected from the African Development Bank, the European Investment Bank, Islamic Development Bank, and private investors.
BRIDGE will deploy climate-resilient broadband infrastructure across underserved and unserved areas, aiming to extend Nigeria’s fibre-optic backbone from 35,000 kilometres to over 125,000 km. The plan features seven main fibre rings linking the six geopolitical zones with Lagos, alongside 37 city loops, 77 regional networks, and multiple edge data centres.
“This is arguably the most ambitious digital infrastructure project in Nigeria’s history. We are building one of the largest digital backbones in the developing world,” said Bosun Tijani, minister of communications and digital economy, in August when unveiling the project’s technical design.
The project will be executed through a Special Purpose Vehicle, with the federal government holding a 51 per cent equity stake and private investors retaining 49 per cent. Officials argue that this hybrid model will ensure both state oversight and private sector efficiency.
The second loan, valued at $250 million, is dedicated to Nigeria’s participation in the World Bank’s regional Health Security Programme. Coordinated by the Nigeria Centre for Disease Control and Prevention (NCDC) and supervised by the Ministry of Finance, the programme aims to boost pandemic preparedness, enhance surveillance systems, and improve emergency response mechanisms.
The initiative builds on lessons from the COVID-19 pandemic, as well as recent outbreaks of cholera, Lassa fever, and diphtheria that have exposed gaps in Nigeria’s public health infrastructure. Regional collaboration is central to the design, as the programme spans multiple West and Central African countries.
The $750 million package comes amid a sharp rise in Nigeria’s borrowing from the World Bank. Between June 2023 and August 2025, the country secured $8.4 billion in fresh loans across 15 projects, covering energy, education, health, rural development, and governance.
Of this total, $6.5 billion came through the International Development Association (IDA), the World Bank’s concessional window, and $1.95 billion from the International Bank for Reconstruction and Development (IBRD), which lends on more commercial terms.
Data from the Debt Management Office (DMO) shows Nigeria’s total debt to the World Bank reached $18.23 billion as of March 31, 2025, up from $17.81 billion in December 2024. This figure includes $16.99 billion from the IDA and $1.24 billion from the IBRD. The World Bank now accounts for nearly 40 per cent of Nigeria’s external debt stock, which stood at $45.98 billion in Q1 2025.
However, economists are divided on whether this financing trajectory is sustainable.
“Borrowing isn’t inherently bad. If it’s concessionary and tied to viable, revenue-generating projects, then it’s a smart move. The key is in implementation and accountability. These projects must deliver long-term economic dividends; otherwise, we are just piling debt without a growth strategy,” argued Adewale Abimbola, a Lagos-based economist.
But others are less optimistic. Aliyu Ilias, CEO of CSA Advisory, warned that Nigeria’s debt profile is already alarming.
“When former President Muhammadu Buhari left office, the debt stock was about N87tn. Now it’s around N149tn, with projections that it could hit N180tn soon. We were told fuel subsidy removal and improved tax collections would reduce the borrowing need. Instead, the debt burden is crowding out funding for infrastructure, education, and job creation,” Ilias said.
He further cautioned that rising debt service obligations are squeezing fiscal space, while also adding inflationary pressures and worsening foreign exchange volatility.
Despite these warnings, policymakers maintain that the loans are critical to bridging Nigeria’s infrastructure and social gaps. The BRIDGE project, in particular, is pitched as a catalyst for digital inclusion that could unlock productivity gains across agriculture, commerce, and education. Meanwhile, the health security loan is expected to save lives and reduce the economic toll of public health emergencies.
International agencies appear to share this optimism. The African Development Bank has already pledged $200 million to BRIDGE, while European and Middle Eastern lenders are reportedly lining up to participate. For the health project, the World Bank has emphasised the importance of regional collaboration in preventing future pandemics.
Still, Nigeria’s debt trajectory remains a sticking point. With the World Bank constituting over 81 per cent of Nigeria’s total multilateral debt, the government’s growing dependence on the institution raises questions about policy autonomy and long-term sustainability.
The challenge is not just securing loans but ensuring they translate into measurable progress. Experts stress that accountability mechanisms, transparent procurement, and effective project delivery will determine whether these borrowings create value or deepen the debt trap.
“The debate shouldn’t be about whether Nigeria should borrow. It should be about what we do with the borrowed funds. If BRIDGE succeeds in connecting rural Nigeria to the digital economy and if the health programme saves us from another devastating pandemic, then these loans will have been worth it,” Abimbola said.
But Ilias countered that Nigeria risks borrowing its way into stagnation. “If revenues are truly improving, why are we still on this borrowing binge? We can’t keep leaning on the World Bank as a crutch,” he said.
As the World Bank board prepares for its September 30 meeting, Nigeria faces the dual dilemma of striving to modernise its economy through transformative infrastructure and health investments, yet weighed down by a ballooning debt profile that could limit future options.
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