The Federal Government is in advanced talks with the World Bank over a fresh $1.25 billion loan aimed at supporting economic reforms, job creation, and improving Nigeria’s business environment.
Findings showed that the proposed facility, known as the Nigeria Actions for Investment and Jobs Acceleration programme, has reached a critical approval stage within the World Bank’s process and is expected to be presented for final approval on June 26, 2026.
If approved, the loan would become one of the biggest World Bank facilities secured under the administration of President Bola Tinubu, second only to the $1.5 billion economic stabilisation loan approved in June 2024.
At the current exchange rate of about ₦1,361 per dollar, the proposed facility is estimated at roughly ₦1.70 trillion.
The programme is designed to support reforms targeted at improving access to finance, expanding electricity and digital services, boosting agriculture, strengthening tax administration, and encouraging private investment.
Documents obtained from the World Bank showed that the loan has moved beyond the concept and appraisal stages and is currently at the decision meeting phase, where the lender reviews the final package before forwarding it to the Board of Executive Directors for final approval.
The Federal Ministry of Finance is expected to coordinate the implementation of the programme alongside agencies including the Central Bank of Nigeria, Nigerian Electricity Regulatory Commission, the Securities and Exchange Commission, and the Ministry of Power.
The fresh borrowing push comes as Nigeria continues to rely heavily on multilateral funding to support ongoing economic reforms.
Between June 2023 and May 2026, the World Bank approved about $9.35 billion in loans and credits for Nigeria across sectors such as power, education, healthcare, agriculture, renewable energy, and social protection.
If the new facility is approved, total World Bank approvals under Tinubu’s administration would rise to approximately $10.6 billion.
Nigeria’s debt profile is also expected to increase if the loan is fully disbursed. Current figures from the Debt Management Office show that the country’s external debt stood at about $51.86 billion as of December 2025, while total public debt was estimated at ₦159.28 trillion.
The proposed loan could raise Nigeria’s external debt to over $53 billion and total public debt to more than ₦160 trillion.
Despite concerns over rising debt, government officials insist the financing is necessary to support critical reforms and economic growth.
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The Accountant-General of the Federation, Shamseldeen Ogunjimi, recently warned that Nigeria could reconsider future World Bank facilities if approval and disbursement delays continue.
According to him, prolonged delays in releasing funds could affect project timelines and weaken confidence in the lending process.
Meanwhile, economists remain divided over the country’s growing dependence on external borrowing.
Some analysts argue that concessionary loans from institutions like the World Bank can support long-term development if properly managed and invested in productive sectors.
Others, however, warn that rising debt levels could worsen fiscal pressures, especially if government revenue does not improve significantly.
The Nigerian Economic Summit Group also cautioned that Nigeria’s debt outlook remains fragile, noting that while some debt indicators appear stable, underlying fiscal risks remain high due to continued borrowing and weak revenue generation.
According to the group, Nigeria still faces a high-risk fiscal environment and must adopt stronger debt sustainability measures to avoid long-term economic strain.
