Nigeria’s Shiny New Loan

Is the recent $2.25 billion loan from the World Bank a lifeline or trap door?

Written by Dotun Odunlade

Sep 15, 2024

Photo illustration by Dami Mojid for THE REPUBLIC. Source Ref: Wale Edun, Nigeria’s Minister of Finance. JENNIFER GRAYLOCK / UN GLOBAL IMPACT.

Before Bola Ahmed Tinubu was sworn in as president on 29 May 2023, Nigeria had faced a series of economic and social misfortunes. These included fuel scarcity, oil theft, corruption and mismanagement of taxpayer’s funds, vandalism, insecurity, high cost of living, and extremism. At his inauguration, the president, as is customary in Nigeria and every other political landscape, promised to overturn these misfortunes, and most of all, to alleviate poverty, economic liberation, and other economic challenges.

The current reality of the economy reveals that these promises have not been kept, and worse, that Nigeria is in a poorer economic condition than it was before the Tinubu administration. Fuel price is triple what it was according to a 4 September BBC report. Food has far become a luxury for the average Nigerian, the cost of living is costing the living, and insecurity is on a rampage. All these have led to the fragile situation of Nigeria’s economy. The federal government, recognizing the crucial need to avoid a national crisis, embarked on critical reforms to address economic distortions and revive fiscal targets. The need for a bold and crucial step led to the taking of loans from the World Bank.

You’ve Reached Your Limit of Free Reading.

The Republic is a Nigerian media-tech company dedicated to explaining our time—through deeply reported journalism on power, culture and society.

Ad-Free Reading Experience

Focused consumption without interruptions.

Unlimited Access to Exclusive Archives

Years of reporting at your fingertips.

In-Depth Deep-dive Reporting

Long-form journalism that matters.

Create a free account to continue reading this month and access more of our work.

About the Author

Dotun Odunlade

is a lawyer from Nigeria who specializes in lending and capital markets.

Comments

SHOP THE REPUBLIC

The Sinister Side of Oluremi Tinubu’s ‘Entrepreneurial Citizenship’

The recent rhetoric of micro-entrepreneurship advanced by Nigeria’s first lady, Senator Oluremi Tinubu, harks back to longstanding assumptions about poverty in Africa while echoing a newer, more insidious discourse of entrepreneurial citizenship. Taken together, these narratives serve the interests of African governments and powerful external actors.

—March 22, 2026

The Night Women of Benin City

As daylight fades in Benin City, women step into the night to sustain families, communities and an informal economy that keeps the city alive. The women-led night markets of Benin transform into spaces of survival, solidarity and quiet resistance.

—March 22, 2026

The Speculative Worlds of ‘Yan Crypto

You thought the Nigerian cryptocurrency ecosystem was confined to Lagos? Think again. Meet northern Nigeria’s ‘yan crypto and the digital worlds of volatile money they deftly navigate.

—December 21, 2025

Inside Nigerian Freelancers’ Currency Trap

Nigeria’s freelance economy is growing, but for millions of digital workers, receiving international payments remains an extreme sport. If the country wants to export digital labour and capture its value at home, it must first fix how that labour gets paid.

—November 9, 2025

What Naira Decoupling Means for Nigeria’s Economy

For decades, oil has dictated the fate of the naira. When crude prices soared, the currency strengthened; when they collapsed, the naira buckled. This cycle, so familiar to Nigerians, once seemed unbreakable.

Subscribe to our free newsletter.

What’s your e-mail?

You’re in — welcome to The Republic

Complete your onboarding

Read

Connect

Apps

More

Read

Connect

Apps

More

Nigeria’s Shiny New Loan