The Federal Government of Nigeria has secured more than $10 billion in external loans over the past two years, according to fresh data from the Debt Management Office (DMO). However, only about half has been disbursed so far.
The loans were sourced from multilateral institutions, regional financial bodies, and the international capital market through Eurobonds. They span sectors including infrastructure, defence, energy, education, and digital innovation.
One of the earliest facilities under the current administration was a €103.9 million loan from Agence Française de Développement for the i-DICE digital and creative economy initiative.
Signed in October 2023, the loan carries a 3.5% interest rate and a seven-year moratorium, maturing in 2043. So far, only €3.9 million ($4.2 million) has been disbursed.
A €425.7 million defence loan agreement with Italian bank UniCredit S.p.A. for the supply of six F.A. aircraft remains undisbursed. It was signed with a 3.85% interest rate and a four-year moratorium, maturing in 2037.
The first China-backed loan came from China Development Bank for the Kaduna-Zaria rail project, valued at €883.5 million. Signed in December 2023, it carries a 4.33% interest rate and a five-year moratorium, with maturity set for 2040. Disbursement so far stands at €245.2 million ($265 million).
Also in December, Nigeria secured a $449 million World Bank loan for power sector recovery. The facility has a 6.27% interest rate and matures in 2058, but only $1.1 million has been disbursed.
Two additional loans from the World Bank’s International Development Association (IDA) were signed the same day:
XDR 521.3 million for the Adolescent Girls Initiative for Learning and Empowerment (AGILE), with a 2% interest rate and six-year moratorium, maturing in 2053. Disbursement: XDR 41.3 million ($54.8 million).
XDR 371.2 million for the Nigeria for Women Scale-Up Project, also at 2% interest and a five-year moratorium, maturing in 2053.
The Islamic Development Bank also signed a $3.56 million loan for the i-DICE project, with a 5.46% interest rate and five-year moratorium. Only $932,552 has been disbursed.
