By Joy Yesufu
The Federal Government of Nigeria is seeking a fresh $1.25bn (about N1.7tn) loan from the World Bank to support economic reforms, job creation, and competitiveness.
Findings showed that the proposed facility, titled Nigeria Actions for Investment and Jobs Acceleration, has reached an advanced stage in the World Bank’s approval process and is expected to be presented for approval on June 26, 2026.
If approved, the facility would become one of the largest single World Bank loans secured under the administration of Bola Ahmed Tinubu, second only to the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Data obtained from a World Bank Programme Information Document indicated that the project has advanced to the lender’s “decision meeting” stage, a near-final phase in the approval cycle where the bank’s management reviews appraisal reports and determines whether the facility should proceed to the Board of Executive Directors for final approval.
According to the document, “The review did authorise the team to appraise and negotiate,” indicating that major negotiations and reform commitments between Nigeria and the World Bank have largely been concluded.
The facility is expected to support reforms aimed at improving access to finance, electricity, and digital services, while also strengthening tax administration, agriculture, trade competitiveness, and private sector investment.
The borrower is listed as the Federal Republic of Nigeria, while the Federal Ministry of Finance will serve as the implementing agency.
If approved and fully disbursed, Nigeria’s external debt stock could rise from N74.43tn ($51.86bn) recorded at the end of December 2025 to about N76.13tn ($53.11bn).
The country’s total public debt could also increase from N159.28tn to approximately N160.98tn.
Lare elevated ahead of the 2027 elections, with pressures that could delay or reverse sensitive reforms,” the document stated.
