The Federal Government is on the verge of securing a fresh $1.25 billion loan from the World Bank to accelerate economic reforms, create jobs, and enhance Nigeria’s competitiveness.
The proposed facility, titled **Nigeria Actions for Investment and Jobs Acceleration**, has reached an advanced stage in the World Bank’s approval process and is scheduled for presentation to the Board of Executive Directors on June 26, 2026.
If approved, this would become the second-largest single loan obtained by Nigeria under President Bola Tinubu’s administration, following the $1.5 billion Reforms for Economic Stabilisation and Transformation package secured in June 2024.
Focus Areas of the Loan
According to project documents, the loan aims to expand access to finance, digital services, and electricity, while supporting key reforms in taxation, trade, and agriculture. The Federal Ministry of Finance will serve as the implementing agency.
At the current exchange rate of approximately N1,361.4 per dollar, the facility is equivalent to about N1.70 trillion, highlighting the government’s continued reliance on multilateral financing to fund its reform agenda.
Debt Implications
Should the loan be fully disbursed, Nigeria’s external debt stock would rise from $51.86 billion (as of December 31, 2025) to around $53.11 billion. The country’s total public debt would increase from N159.28 trillion to approximately N160.98 trillion.
Strong World Bank Engagement
Since President Tinubu assumed office in May 2023, the World Bank has approved roughly $9.35 billion in loans and credits for Nigeria across various sectors, including power, education, healthcare, agriculture, social protection, and MSME development. Approval of the new $1.25 billion facility would push total approvals under this administration to about $10.6 billion.
The loan has already passed key internal stages, including appraisal and negotiations, and is now at the critical “decision meeting” phase a strong indication that substantial agreement has been reached between both parties.
Government Raises Concerns Over Delays
The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, recently warned that Nigeria may begin rejecting World Bank loans if approval and disbursement delays persist. He noted that prolonged bureaucratic processes undermine project timelines, especially since these are loans that must be repaid, not grants.
Ogunjimi urged the World Bank to expedite processing to align with Nigeria’s fiscal planning and development priorities.
The World Bank, however, has explained that disbursements are typically made in tranches based on project milestones and the fulfilment of agreed reform conditions.
Nigeria’s debt to the World Bank stood at $19.89 billion as of December 31, 2025, reflecting an 11.7% increase over the previous year.
