Tinubu Administration Moves To Secure New $1.25 Billion World Bank Loan

According to reports, the proposed financing was detailed in a World Bank project document titled Nigeria Actions for Investment and Jobs Acceleration, which outlines the Federal Government’s plans to strengthen economic competitiveness and stimulate private sector growth.

The document indicates that negotiations between Nigeria and the global lender have reached an advanced stage, with the facility scheduled to be presented to the World Bank’s Board of Executive Directors for approval on June 26, 2026.

If approved, the loan would become one of the largest financing packages recently secured by Nigeria from the World Bank, second only to the $1.5 billion economic reform support facility approved in June 2024.

The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance is expected to oversee implementation of the programme.

The World Bank stated that the facility is designed to support the government’s efforts to improve access to finance, digital infrastructure, and electricity services, while boosting competitiveness through reforms in taxation, trade, and agriculture.

The lender noted that the project has successfully passed key internal assessments and is now at the decision meeting stage, one of the final procedural steps before formal board consideration. At this phase, financing terms and policy commitments are largely agreed upon by both parties.

The proposed borrowing comes amid mounting concerns over Nigeria’s growing debt profile and continued reliance on external financing. As of December 31, 2025, the country’s external debt stood at $51.86 billion, while total public debt had risen to $110.97 billion.

Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits to Nigeria, covering sectors such as power, healthcare, education, agriculture, renewable energy, social protection, and support for small and medium-sized enterprises.

Notable approvals include the $2.25 billion RESET and ARMOR reform package in June 2024, $1.57 billion for the HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience initiatives in March 2025.

The latest negotiations come shortly after Shamseldeen Ogunjimi cautioned that Nigeria could reconsider future World Bank loans if approval and disbursement delays extend beyond six months.

During a recent meeting in Abuja with a World Bank delegation led by Mrs. Treed Lane, Ogunjimi emphasized that the facilities are repayable loans rather than grants and should therefore be processed within timelines that align with Nigeria’s fiscal and development priorities.

He warned that prolonged bureaucratic delays could disrupt project implementation and undermine national development goals, urging the World Bank to accelerate the approval and release of funds to ensure timely and effective use of borrowed resources.