The Federal Government is currently in discussions with the World Bank over a proposed $1.25 billion loan facility aimed at supporting economic reforms, job creation, and measures to improve Nigeria’s competitiveness.
The proposed loan, which is still awaiting final approval, comes at a time Nigeria continues to face rising public debt, economic restructuring challenges, and increasing pressure to improve infrastructure, finance access, and social development programmes.
According to a document obtained titled ‘Nigeria Actions for Investment and Jobs Acceleration’, negotiations between Nigeria and the World Bank have reached an advanced stage.
The document revealed that the loan is expected to support reforms targeted at expanding employment opportunities, improving access to finance, and strengthening economic competitiveness.
The proposed facility is expected to be presented for approval on June 26, 2026, having already moved beyond the concept and appraisal stages of the World Bank’s approval process.
If approved, the facility would become one of Nigeria’s largest recent loans from the World Bank, second only to the “$1.5bn 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.
According to the World Bank document, the facility 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 document also noted, “The review did authorise the team to appraise and negotiate,” indicating that the project has passed several internal checks within the World Bank system.
At the current decision-meeting stage, the World Bank’s management is expected to review the final appraisal package before forwarding it to the Board of Executive Directors for final approval.
This stage typically comes after negotiations, financing terms, and reform commitments have already been agreed upon in principle between the borrower and the lender.
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.
Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits for Nigeria across several sectors, including healthcare, education, agriculture, renewable energy, MSME financing, social protection, and economic reforms.
Some of the major approvals during the period 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 the $1.08 billion education and resilience support programmes approved in March 2025.
The fresh loan discussions come shortly after the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria may stop accepting World Bank loan facilities if approval and disbursement delays continue beyond six months.
According to a statement issued by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, Ogunjimi raised the concern during a meeting in Abuja with a World Bank delegation led by Mrs Treed Lane.
He said, “If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” stressing concerns over lengthy bureaucratic processes affecting project execution timelines.
The Accountant-General further stated that because the facilities are loans and not grants, Nigeria expects faster processing and disbursement procedures to align with fiscal planning and development targets.
He also urged the World Bank to “expedite the approval and disbursement of project funds to Nigeria” to support the country’s economic priorities and ongoing reforms.
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