President Bola Tinubu’s administration is in advanced negotiations to secure a fresh $1.25 billion loan from the World Bank, aimed at boosting economic reforms, job creation, and investment growth in Nigeria.
The proposed facility was disclosed in a World Bank document titled “Nigeria Actions for Investment and Jobs Acceleration,” with reports indicating that discussions have reached the final stages ahead of a possible Board of Executive Directors’ approval scheduled for June 26, 2026, according to Channels Television.
If approved, the loan would become one of Nigeria’s largest recent borrowings from the global lender, ranking just behind the $1.5 billion development financing approved in June 2024. The Federal Ministry of Finance is expected to oversee implementation on behalf of the Federal Government.
The World Bank stated that the financing is designed to support reforms across key sectors, including expanded access to finance, digital services, and electricity, as well as improvements in taxation, trade, and agriculture to strengthen national competitiveness.
The document further noted that the project has already passed key internal assessments, with negotiations on policy commitments and financing terms largely concluded. At this stage, the proposal is awaiting final board consideration.
Nigeria’s rising debt profile continues to draw attention, with external debt estimated at $51.86 billion as of December 2025 and total public debt reaching $110.97 billion. Between June 2023 and May 2026, the World Bank has already approved about $9.35 billion in loans and credits for Nigeria across multiple sectors, including power, education, healthcare, agriculture, and social protection.
Some of the major approvals include a $2.25 billion reform financing package in 2024, $1.57 billion for social and economic programmes later that year, and $1.08 billion for education and resilience initiatives in 2025.
However, the latest loan request comes amid concerns over delays in project approvals and disbursements. The Accountant-General of the Federation, Shamseldeen Ogunjimi, recently warned that Nigeria may reconsider future World Bank loans if approval and funding delays exceed six months.
Speaking during a meeting with a World Bank delegation led by Mrs Treed Lane in Abuja, Ogunjimi stressed that prolonged bureaucratic processes could hinder project execution and disrupt national development plans.
He urged the bank to fast-track approvals and disbursements, noting that since the funds are loans and not grants, timely release is essential to ensure proper implementation within Nigeria’s fiscal framework.
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