The Federal Government is currently in advanced discussions with the World Bank over a fresh $1.25 billion loan facility aimed at supporting economic reforms, job creation, and competitiveness in Nigeria.
Details of the proposed facility were contained in a World Bank document titled Nigeria Actions for Investment and Jobs Acceleration.
According to the document, the loan has moved beyond the concept and appraisal stages and is now at a critical phase ahead of possible approval by the World Bank Board of Executive Directors on June 26, 2026.
If approved, the facility would become one of the largest World Bank loans secured by Nigeria in recent years, second only to the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance will serve as the implementing agency for the programme.
The World Bank document stated that the proposed financing is designed “to support the government’s efforts to expand access to finance, digital, and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.”
The project has now reached what the World Bank describes as the “decision meeting” stage of its project cycle — a near-final internal review where management evaluates the appraisal package before forwarding it for formal board approval.
According to the document, “The review did authorise the team to appraise and negotiate,” indicating that major financing terms, policy reforms, and implementation commitments have already been agreed upon in principle between both parties.
Nigeria’s external debt as of December 31, 2025, stood at $51.86 billion, while the country’s total public debt currently amounts to $110.97 billion.
Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits for Nigeria across several sectors, including power, healthcare, education, agriculture, social protection, renewable energy, MSME financing, and economic reforms.
Some of the major approvals include the $2.25 billion RESET and ARMOR reform financing approved in June 2024, the $1.57 billion HOPE and SPIN programmes approved in September 2024, and another $1.08 billion for education and resilience programmes approved in March 2025.
The fresh loan discussions come shortly after the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, warned that Nigeria could reject future World Bank facilities if approval and disbursement delays continue beyond six months.
Speaking during a courtesy visit by a World Bank delegation in Abuja last week, Ogunjimi stressed that Nigeria expected timely processing of funding requests since the facilities were loans and not grants.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he said.
The Accountant-General argued that prolonged delays in approvals could negatively affect project implementation timelines and broader national development goals.
He therefore urged the World Bank to accelerate the approval and release of funds tied to Nigeria’s development priorities.
Ogunjimi further noted that because the loans carry repayment obligations, disbursement schedules must align with the country’s fiscal planning and project execution timelines.
