World Bank Says Nigeria’s Real Challenge Is Low Revenue, Not High Debt

The World Bank Country Director for Nigeria recently highlighted that the country’s fiscal concern lies in weak revenue mobilization rather than excessive borrowing. He noted that Nigeria’s debt-to-GDP ratio remains moderate compared with many peers and is not a cause for alarm. He explained that borrowing is essential for long-term investments, citing plans to expand electricity access for 32 million Nigerians. Upfront funds, he argued, enable the government to deliver services that ultimately boost economic growth and repayment capacity. The Bank warned that without stronger revenue, Nigeria may struggle to sustain debt repayments. It recommended prioritizing tax reforms to finance infrastructure, healthcare and education, and unveiled a new partnership framework for 2026–2032 focused on job creation and digital connectivity.

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