The Federal Government is in advanced discussions with the World Bank over a fresh $1.25 billion loan aimed at supporting economic reforms, job creation, and investment competitiveness in Nigeria.
According to a report by The PUNCH, the proposed facility — titled Nigeria Actions for Investment and Jobs Acceleration — has reached a critical approval stage within the World Bank system and is expected to be presented for final approval on June 26, 2026.
If approved, the loan would become the second-largest World Bank facility secured under the administration of Bola Ahmed Tinubu, behind the $1.5 billion economic stabilisation loan approved in 2024.
At the current exchange rate, the proposed facility is estimated at about ₦1.70 trillion and could push Nigeria’s total public debt above ₦160 trillion if fully disbursed.
The World Bank said the loan is intended to support reforms in finance, electricity access, digital infrastructure, agriculture, taxation, and trade competitiveness. The programme will reportedly be implemented through the Federal Ministry of Finance alongside agencies including the Central Bank of Nigeria and the Nigerian Electricity Regulatory Commission.
However, the bank warned that political risks ahead of the 2027 elections could affect implementation of key reforms.
Meanwhile, the Accountant-General of the Federation, Shamseldeen Ogunjimi, cautioned that Nigeria may reject future World Bank facilities if approval and disbursement delays continue.
Economists have also expressed concerns over Nigeria’s rising debt profile, warning that continued borrowing without stronger revenue generation could worsen fiscal pressures and debt sustainability challenges.
