The Federal Government is in advanced discussions with the World Bank over a proposed $1.25 billion loan. This loan is aimed at accelerating economic reforms, boosting job creation, and improving Nigeria’s investment climate.
According to a Programme Information Document reviewed by The PUNCH, the facility officially titled Nigeria Actions for Investment and Jobs Acceleration (NAIJA) has reached the decision meeting stage of the World Bank’s approval process, one of the final internal steps before it is submitted to the institution’s Board of Executive Directors for formal approval.
The project is scheduled for board consideration on June 26, 2026.
Second-Largest World Bank Loan Under Tinubu
If approved, the $1.25 billion facility would become the second-largest single World Bank loan secured under President Bola Tinubu, behind the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing approved in June 2024.
At the official exchange rate of ₦1,361.4/$, the loan is equivalent to approximately ₦1.70 trillion.
The fresh borrowing would increase Nigeria’s external debt from ₦74.43 trillion ($51.86 billion) as of December 31, 2025, to roughly ₦76.13 trillion ($53.11 billion). Total public debt would rise from ₦159.28 trillion to about ₦160.98 trillion.
Purpose of the Loan
The World Bank said the financing is designed to support the government’s efforts to:
- Expand access to finance
- Improve digital connectivity
- Strengthen electricity services
- Enhance tax administration
- Reform trade policies
- Boost agricultural productivity
According to the lender, the operation is intended to reduce food and production costs. Additionally, it aims to deepen financial markets, increase private investment, and improve domestic revenue mobilisation.
“The $1.25 billion standalone operation builds on recent progress in restoring stability and underpins the government’s shift toward an inclusive growth model,” the World Bank stated.
Implementation will be coordinated by the Federal Ministry of Finance in collaboration with agencies including the Central Bank of Nigeria. Other agencies involved are the Securities and Exchange Commission, Nigerian Electricity Regulatory Commission, and the National Agricultural Seed Council.
World Bank Lending to Nigeria Nears $10.6 Billion Under Tinubu
Since President Tinubu assumed office in May 2023, the World Bank has approved approximately $9.35 billion in loans and credits for Nigeria. These loans and credits cover sectors such as education, healthcare, agriculture, social protection, renewable energy, and economic reform.
Major approvals include:
- $2.25 billion for RESET and ARMOR reform programmes in June 2024
- $1.57 billion for HOPE and SPIN initiatives in September 2024
- $1.08 billion for education and resilience projects in March 2025
Approval of the new facility would push cumulative World Bank commitments under Tinubu to about $10.6 billion.
The Accountant-General of the Federation, Shamseldeen Ogunjimi, recently cautioned that Nigeria may decline World Bank loans if approval and disbursement delays continue.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” Ogunjimi said during a meeting with a World Bank delegation in Abuja.
Nigeria’s Debt to the World Bank Rises to $19.89 Billion
Data from the Debt Management Office show that Nigeria’s debt to the World Bank rose by $2.08 billion in one year. It reached $19.89 billion as of December 31, 2025.
This includes:
- $18.51 billion owed to the International Development Association (IDA)
- $1.38 billion owed to the International Bank for Reconstruction and Development (IBRD)
World Bank obligations now account for 38.36% of Nigeria’s total external debt.
