World Bank to Approve $750 Million Loan Package for Nigeria on September 30, 2025
The World Bank is set to approve two major loans totaling $750 million for Nigeria on Tuesday, September 30, 2025, in a move that underscores the country’s growing reliance on multilateral financing for critical infrastructure and health reforms. Information available on the Bank’s official website confirms that the loans are at advanced negotiation stages and are scheduled for board approval.
The financing package is aimed at strengthening Nigeria’s healthcare security and expanding access to climate-resilient digital infrastructure, particularly in underserved and rural communities.
Breakdown of the $750 Million Loans:
1. $500 Million for Digital Infrastructure Project BRIDGE.
The larger of the two loans $500 million is allocated to the Building Resilient Digital Infrastructure for Growth in Nigeria (BRIDGE) project. Spearheaded by the Federal Ministry of Communications, Innovation, and Digital Economy, the project seeks to dramatically expand broadband access to unserved and underserved regions.
• Total Cost: $1.6 billion
• World Bank Contribution: $500 million (via concessional credit from the
International Development Association)
• Other Sources: African Development Bank ($200m already committed), plus
expected funding from the European Investment Bank, Islamic Development
Bank, and private sector investors.
According to Communications Minister Dr. Bosun Tijani, the initiative is Nigeria’s most ambitious digital project yet:
“Over the past two years, we have worked tirelessly on what is arguably the most ambitious and foundational digital infrastructure project in Nigeria’s history, Project BRIDGE.”
The rollout plan includes:
• Seven main fibre rings linking all six geopolitical zones with Lagos.
• 37 city-level fibre loops and 77 regional networks.
• Multiple edge data centres to enhance connectivity and reduce reliance on foreign
infrastructure.
Once complete, BRIDGE is expected to expand Nigeria’s broadband footprint from 35,000km to over 125,000km, positioning the country among the developing world’s leaders in digital backbone infrastructure.
Implementation will be handled by a Special Purpose Vehicle (SPV), with the Federal Government holding 51% equity and private investors 49%.
2. $250 Million for Health Security Phase II
The second facility, worth $250 million, is earmarked for the Health Security Programme in Western and Central Africa (Nigeria, Phase II).
• Coordinated by the Nigeria Centre for Disease Control and Prevention (NCDC).
• Supervised by the Federal Ministry of Finance.
• Designed to strengthen Nigeria’s ability to prevent, detect, and respond to health
emergencies.
The programme builds on lessons learned from COVID-19 and recent epidemics, focusing on regional health surveillance systems and emergency preparedness mechanisms. It is part of a broader West and Central African initiative, highlighting the need for cross-border cooperation in health security.
Nigeria’s Rising Borrowing Profile
The two loans come against the backdrop of Nigeria’s growing dependence on multilateral financing. Between June 2023 and August 2025, Nigeria secured $8.4 billion in fresh loans from the World Bank alone, spread across 15 projects in energy, education, health, rural development, and governance.
• $6.5 billion came from the IDA (concessional loans).
• $1.95 billion from the IBRD (commercial terms for creditworthy countries).
As of March 31, 2025, Nigeria’s total debt to the World Bank stood at $18.23 billion up from $17.81 billion at the end of 2024. This figure includes $16.99 billion from IDA and $1.24 billion from IBRD.
The World Bank now accounts for 39.7% of Nigeria’s external debt stock, which reached $45.98 billion in Q1 2025. In addition, it represents over 81% of Nigeria’s total multilateral debt, solidifying its role as Nigeria’s single largest external creditor.
Experts React: Opportunity or Risk?
Economists remain divided on the implications of Nigeria’s increasing loan appetite.
Adewale Abimbola, a Lagos-based economist, believes the loans could be beneficial if properly implemented:
“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.”
He stressed that long-term benefits must include economic growth, job creation, and better public services.
However, Dr. Aliyu Ilias, development economist and CEO of CSA Advisory, sounded the alarm over Nigeria’s rising debt trajectory:
“When former President Muhammadu Buhari left office, the debt stock was around N87 trillion. Now, it’s approximately N149 trillion, and projections suggest it could hit N180 trillion.”
Dr. Ilias questioned why Nigeria is borrowing more despite reported gains in revenue from fuel subsidy removal and increased tax collections by the FIRS and Customs Service:
“Why are we borrowing more when we’re supposedly earning more? It’s clear the debt burden is crowding out funding for essential services and capital projects.”
He warned that debt servicing costs, foreign exchange volatility, and inflationary pressures could undermine Nigeria’s economic stability and limit government investment in critical sectors like infrastructure, education, and healthcare.
The World Bank’s expected approval of $750 million in fresh loans for Nigeria represents both an opportunity and a challenge. On one hand, it could transform digital infrastructure and strengthen the nation’s health security systems. On the other, it adds to an already heavy debt burden that raises concerns about sustainability.
As Nigeria moves forward with Project BRIDGE and the Health Security Programme, transparency, accountability, and efficient execution will determine whether these loans truly deliver long-term benefits or deepen the country’s financial strain.
Naira Ranks Ninth Weakest Currency in Africa Forbes Report
The Nigerian Naira has been ranked as the ninth weakest currency in Africa, according to a September 2025 currency report published by Forbes. The ranking, which relies on real-time data from the Open Exchange Rates API, places the Naira at ₦1,490 to $1, underscoring the persistent strain on Nigeria’s economy despite recent signs of relief in inflation and monetary stability.
Forbes’ currency calculator updates every five minutes, capturing fluctuations in demand, supply, and investor sentiment. By reflecting live trading values, the system highlights the economic pressures influencing a country’s exchange rate including inflation trends, capital inflows, productivity levels, and central bank policies.
According to the September 2025 update:
• Weakest African Currencies
1. São Tomé & Príncipe Dobra – 22,282 per $1
2. Sierra Leonean Leone – 20,970 per $1
3. Guinean Franc – 8,680 per $1
4. Ugandan Shilling – 3,503 per $1
5. Burundian Franc – 2,968 per $1
6. Congolese Franc – 2,811 per $1
7. Tanzanian Shilling – 2,465 per $1
8. Malawian Kwacha – 1,737 per $1
9. Nigerian Naira – ₦1,490 per $1
10. Rwandan Franc – 1,448 per $1
• Strongest African Currencies
1. Tunisian Dinar – 2.90 per $1
2. Libyan Dinar – 5.40 per $1
3. Moroccan Dirham – 9.91 per $1
4. Ghanaian Cedi – 12.31 per $1
5. Botswanan Pula – 14.15 per $1
With 54 recognized African nations, Nigeria’s position in the bottom 10 bracket highlights how much work still lies ahead for Africa’s largest economy.
Naira’s Struggles: Why the Currency Remains Weak
Nigeria’s currency troubles are not new. The Naira has suffered repeated devaluations in recent years, triggered by:
• Heavy reliance on oil revenues and exposure to global crude price shocks.
• High import dependency, leading to persistent dollar demand.
• Low foreign reserves relative to market demand.
• Inflationary pressures, which erode purchasing power and investor confidence.
Even with the Central Bank of Nigeria’s (CBN) managed float system and occasional interventions, the Naira has struggled to regain stability in the face of structural weaknesses.
Inflation Relief Offers Some Hope
Interestingly, the ranking came at a time when Nigeria was recording rare disinflation. According to the National Bureau of Statistics (NBS), headline inflation eased from 24.5% in January 2025 to 20.12% in August 2025 the sharpest mid-year slowdown in over a decade.
The Independent Media and Policy Initiative (IMPI) attributed the trend to:
• Improved foreign exchange inflows from oil and remittances.
• Stronger agricultural yields, which eased food inflation.
• A stable monetary stance, with the CBN holding the Monetary Policy Rate
(MPR) at 27.5%.
IMPI chairman, Dr. Omoniyi Akinsiju, said:
“Nigeria recorded a rare disinflation in 2025, with inflation falling from 24.5% in January to 20.12% in August the sharpest mid-year slowdown in more than ten years.”
The group projects inflation could drop to 17% by December 2025, suggesting that consumer hardship may ease further if trends continue.
Experts React: Currency vs. Inflation Gap
Economists warn, however, that lower inflation does not immediately translate into currency strength. Lagos-based analyst Kunle Olatunji explained that while easing inflation improves consumer purchasing power, exchange rates are more influenced by capital flows, trade balances, and investor confidence.
“The Naira’s weakness is structural. Even if inflation moderates, Nigeria needs strong export diversification, reduced import dependence, and better foreign investment flows to stabilise the exchange rate.”
Similarly, development economist Dr. Halima Yusuf noted that the currency’s weakness hurts Nigeria’s standing in Africa:
“As the continent’s largest economy, Nigeria cannot afford to be among the bottom 10 weakest currencies. It sends the wrong signal to investors about stability and competitiveness.”
The Bigger Picture
The Forbes report places Nigeria’s Naira alongside fragile African economies like Sierra Leone and Malawi, while oil-rich Libya and reform-driven Tunisia boast the strongest currencies. This comparison highlights the stark economic divergence within Africa where governance, diversification, and financial management largely determine currency resilience.
For Nigerians, the weak Naira translates into higher import costs, expensive foreign education and healthcare, and reduced global competitiveness for local businesses.
Yet, with inflation finally easing and policymakers promising reforms in the oil, agriculture, and technology sectors, there are glimmers of hope that Nigeria might gradually rebuild confidence in its currency.
The Forbes ranking serves as a sobering reminder of Nigeria’s ongoing currency crisis. While disinflation in 2025 offers some optimism for household welfare, the Naira’s position as the ninth weakest currency in Africa reflects deeper structural challenges that cannot be solved overnight. Until Nigeria achieves diversified exports, stronger foreign reserves, and investor trust, the Naira may continue to struggle in the global marketplace even as ordinary citizens hope for a more stable and prosperous future.
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