THE Federal Government is currently in discussions with the World Bank over a fresh $1.25 billion loan aimed at supporting economic reforms, job creation and business competitiveness in Nigeria.
According to a document titled Nigeria Actions for Investment and Jobs Acceleration, the proposed facility is expected to finance reforms focused on expanding access to finance, digital services, electricity and agricultural development.
The document revealed that negotiations for the loan have reached an advanced stage, with the proposal scheduled to be presented for approval on June 26, 2026.
If approved, the facility would become Nigeria’s second-largest World Bank loan after 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 oversee implementation of the programme.
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while the country’s total public debt has risen to $110.97 billion.
The proposed loan has already advanced to the decision-meeting phase of the World Bank’s project approval process. At this stage, the institution’s management reviews the final appraisal documents and decides whether the project should move to the Board of Executive Directors for final approval.
According to the World Bank document, previous internal reviews had already authorised the team to proceed with appraisal and negotiations, indicating that major financing terms and reform commitments had largely been agreed upon.
The lender explained that the facility is designed to support the government’s efforts to improve access to finance, electricity and digital infrastructure, while also strengthening competitiveness through tax, trade and agricultural reforms.
Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits for Nigeria across sectors such as education, healthcare, renewable energy, agriculture, power and social protection.
Major approvals during the period included the $2.25 billion RESET and ARMOR reform financing package in June 2024, $1.57 billion for HOPE and SPIN programmes in September 2024, and another $1.08 billion for education and resilience initiatives in March 2025.
The development comes shortly after the Accountant-General of the Federation, Shamseldeen Ogunjimi, warned that Nigeria may reject World Bank loan facilities if approval and disbursement delays exceed six months.
Speaking during a meeting with a World Bank delegation in Abuja, Ogunjimi stressed that the country expects faster processing timelines since the facilities are loans that must be repaid and not grants.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he warned.
He added that prolonged bureaucratic delays could negatively affect project implementation and broader national development objectives, urging the World Bank to speed up approval and disbursement processes.
