Tinubu Seeks Fresh $1.75bn World Bank Loan Despite Claiming Revenue Target Met, Borrowing No Longer Needed

Tinubu Seeks Fresh $1.75bn World Bank Loan Despite Claiming Revenue Target Met, Borrowing No Longer Needed

 

 

Despite announcing earlier this week that Nigeria had met its 2025 revenue target ahead of schedule and would no longer depend on borrowing, President Bola Ahmed Tinubu’s administration is now seeking fresh loans worth $1.75bn from the World Bank.

 

According to official documents reviewed by The PUNCH, the loans are expected to be approved before the end of the year and will support projects in agriculture, health, digital infrastructure, and small business financing.

 

This comes against the backdrop of strong revenue performance in 2025. Figures released by the Presidency show that Nigeria generated N20.59tn between January and August, a 40.5 per cent increase compared to N14.6tn in the same period last year. Non-oil revenues accounted for 75 per cent of the collections, a development the government described as a major step in reducing dependence on crude oil.

 

Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the revenue surge had placed the country “firmly on course to achieve its annual non-oil revenue target.” Tinubu himself told party stakeholders in Abuja on Tuesday: “Nigeria is not borrowing. We have met our revenue target for the year, and we met it in August.”

 

However, the administration appears to be walking back on that declaration. On Thursday, it emerged that the World Bank is considering loans totalling $1.75bn for Nigeria, spread across four major projects:

 

Nigeria Sustainable Agricultural Value-Chains for Growth ($500m) – aimed at boosting productivity and integrating value chains.

 

Building Resilient Digital Infrastructure for Growth ($500m) – designed to enhance Nigeria’s technology backbone.

 

Health Security Programme in Western and Central Africa – Nigeria Phase II ($250m) – to strengthen health systems and emergency preparedness.

 

Fostering Inclusive Finance for MSMEs in Nigeria ($500m) – targeted at improving access to finance for small and medium-sized businesses.

 

 

These projects are currently under negotiation, with approvals scheduled between September and December 2025.

 

Nigeria’s rising appetite for loans has triggered concern among economists. Data from the Debt Management Office shows that the country’s debt to the World Bank alone stood at $18.23bn as of March 2025, accounting for almost 40 per cent of Nigeria’s total external debt.

 

Development economist Dr. Aliyu Ilias expressed worry that the nation’s debt stock, which stood at about N87tn when Tinubu took over in May 2023, has already ballooned to nearly N149tn and could climb toward N180tn.

 

“Borrowing is not inherently wrong,” he said, “but at a time when the government claims it is exceeding revenue projections, one would expect a slowdown in fresh loan requests.”

 

Another economist, Dr. Muda Yusuf, argued that while deficit financing is a standard feature of modern economies, Nigeria’s focus should be on debt sustainability. “The real danger is falling into a cycle of borrowing to service existing debts. Loans must be tied to projects that generate growth and repayment capacity,” he cautioned.

 

Tinubu’s critics say the contradiction between his public statements and the government’s loan pipeline raises questions about transparency in fiscal management. On Tuesday, the President boasted of meeting revenue targets early, insisting: “Today I can stand here before you to brag: Nigeria is not borrowing.” Yet, two days later, evidence of fresh borrowing plans surfaced.

 

The development comes at a time when local contractors are protesting at the Ministry of Finance over unpaid bills of about N4tn for capital projects executed in 2024, highlighting the government’s deepening funding challenges despite improved revenue.

 

As Nigeria pushes forward with its “Renewed Hope” agenda, the administration faces a balancing act between leveraging concessional loans for development and preventing a debt trap that could limit growth, worsen inflation, and weaken the naira further.