World Bank to phase out China lending by 2031, shifting to knowledge partnership

The World Bank will phase out its lending to China by 2031 under a new country partnership framework, a source familiar with the plan told AFP on Tuesday, confirming an earlier Financial Times report. An anonymous World Bank official said China’s major development gains over recent decades – progress the Bank itself helped support – mean the relationship is entering a new phase where the Bank shifts from lender to knowledge partner.

Lending to China peaked at $2.42 billion in 2017 but fell to $750 million in 2025. Despite the lending pull‑back, Beijing remains a significant contributor to the World Bank’s International Development Association, providing $1.5 billion in the latest replenishment and ranking as the fifth‑largest donor. The Bank also announced a similar loan‑to‑zero plan for Poland by 2031 while keeping technical assistance in place.

For Nigeria and other developing countries, this shift signals that the World Bank may prioritize expertise and policy advice over direct financing for middle‑income borrowers. As financing patterns change, countries may need to lean more on technical partnerships and alternative funding sources to meet development goals.

As the World Bank shifts from lending to knowledge sharing, how might Nigeria adapt its development strategy to benefit more from technical expertise than direct loans?

SOURCE: https://www.channelstv.com/2026/07/01/world-bank-to-phase-out-lending-to-china-by-2031/