The United States has urged the World Bank to reduce lending to middle-income countries and concentrate its development resources on the world’s poorest nations. The call came from U.S. Treasury Secretary Bessent during the 2025 IMF-World Bank Spring Meetings, where she emphasized a need to “get back to basics” in global development finance.
“It’s past time for the World Bank to start applying its graduation policy,” Bessent said, referring to the principle that countries surpassing certain income thresholds should transition away from concessional World Bank financing. She argued that continued support for more developed economies could “crowd out markets” and reward “distortionary policy choices.”
Nigeria, which the World Bank classifies as a lower-middle-income country—with a Gross National Income per capita of $1,596.60 in 2023—may be impacted by the U.S. push for tighter resource targeting. Though still eligible for concessional funding through the International Development Association (IDA), Nigeria could face increased scrutiny as the U.S. seeks to ensure that funding is reserved for countries in the most urgent need.
Despite this, Nigeria remains far from economic self-sufficiency, with nearly 39% of its population living in poverty and significant challenges in infrastructure, healthcare, education, and energy access. Critics caution that lumping all middle-income nations together risks penalizing countries like Nigeria, where national income figures do not reflect the breadth of development needs.
Importantly, Secretary Bessent’s remarks—though firm—were less drastic than many had feared. In the lead-up to the Spring Meetings, there was speculation that the Trump administration might seek to withdraw U.S. support altogether from the IMF and World Bank, continuing the former president’s skepticism toward multilateral institutions. Instead, the U.S. position signals a push for reform rather than retreat, aiming to make the Bretton Woods institutions more efficient and aligned with traditional mandates.
The World Bank’s role in financing infrastructure, health, education, and agricultural projects remains critical to Nigeria’s development ambitions. As global donors push for institutional reform, Nigerian policymakers will likely need to re-strategize to ensure continued access to critical funding while meeting demands for transparency, fiscal discipline, and results-driven programs.
