The Federal Government is set to take a fresh $1.75 billion loan from the World Bank amid worries among Nigerians over the nation’s rising debt stock. If approved, the nation’s total debt will be closed to $99 billion by the end of the year, according to financial analysts.
According to checks, the Tinubu administration has raised the Nigeria’s local and foreign debt to an unprecedented level since coming to office in 2023. the total debt stocks now N149 trillion or $97 billion according to the debt Management Office, DMO.
Not a few Nigerians are also worried that the government is borrowing more despite its claims that the national revenue has increased. On Tuesday, President Bola Ahmed Tinubu stated that the country has surpassed its revenue target for the year.
Checks from World Bank indicate that the Washington-based lender is expected to approve $1.75 billion in new loans for Nigeria before year-end, the loan, is expected to be used to implement key areas of the economy, such as agriculture, health, information technology among others.
Some of the projects include, the $500 million Nigeria Sustainable Agricultural Value-Chains for Growth project, designed to boost farm productivity and rural development; the $500 million digital infrastructure programme to expand connectivity and drive technology-driven growth, and the $250 million health security initiative and $500 million inclusive finance project for micro, small, and medium, MSME enterprises.
The Nigerian Presidency had earlier in the week stated that the administration has surpassed this year’s revenue target after recording realizing over N20 trillion from non-oil sector, adding that this has ensured that the federal, states and local government now have enough to share from the Federation Account, and that the government will no longer need to borrow locally, particularly from banks.
In a statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, titled: “Nigeria’s non-oil revenues power strongest fiscal performance in recent history,” the Presidency said the revenue generation has increased what is shared at the Federation Account Allocation Committee, FAAC for the three tiers of government.
The statement partly read: “The Presidency welcomes the latest revenue figures for January–August 2025, showing that Nigeria is achieving unprecedented growth in non-oil collections, a direct result of reforms to improve the government’s fiscal position, strengthen compliance, and digitise tax administration.
“President Bola Tinubu made a pointed reference to this positive growth trajectory in non-oil revenue mobilisation yesterday while addressing a delegation of the Buhari Organisation led by Senator Tanko Al-Makura, which a section of the media has reported out of context.
“The President highlighted the significant growth in non-oil revenues accruing to the Federation, federal, state, and local governments. From January to August 2025, total collections reached N20.59 trillion, a 40.5% increase from N14.6 trillion recorded in 2024. This strong performance aligns with projections, placing the government firmly on course to achieve its annual non-oil revenue target.
“The President also said that the Federal Government is no longer borrowing from local banks to buttress the strong fiscal performance since the start of the year.
“The President commented on tax revenues, which do not include dollar oil receipts, where targets are not being met because of the slump in the crude oil market.”
The question among not a few Nigerians is: why borrow more when you claimed that revenue has surpassed expectations?
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