The Federal Government has intensified discussions with the World Bank over a fresh $1.25 billion loan facility targeted at supporting economic reforms, job creation, and business competitiveness in Nigeria.
According to a World Bank document titled Nigeria Actions for Investment and Jobs Acceleration, the proposed loan has reached an advanced stage and is expected to be presented for approval on June 26, 2026.
The facility has reportedly moved beyond the concept and appraisal phases within the World Bank’s project cycle.
Loan targets reforms, digital access, competitiveness
If approved, the proposed facility will become one of Nigeria’s largest recent World Bank loans, second only to the $1.5 billion 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 serve as the implementing agency.
According to the World Bank, the funding is expected to support Nigeria’s reform efforts in key sectors.
“The loan 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 stated.
Nigeria’s debt profile under focus
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while the country’s total public debt is currently estimated at $110.97 billion.
The proposed loan is presently at the “decision meeting” stage within the World Bank approval process.
This stage comes after appraisal and negotiations have been concluded, with financing terms, policy commitments, and reform conditions reportedly agreed in principle.
The World Bank explained that the project had already passed important internal reviews and is moving toward final consideration by the Board of Executive Directors.
“The review did authorise the team to appraise and negotiate,” the document noted.
World Bank approved over $9bn for Nigeria since 2023
Between June 2023 and May 2026, the World Bank approved about $9.35 billion in loans and credits for Nigeria across different sectors.
The approvals covered power, healthcare, agriculture, education, renewable energy, MSME financing, social protection, and economic reform programmes.
Among the major approvals were the $2.25 billion RESET and ARMOR reform financing package approved in June 2024, alongside $1.57 billion for HOPE and SPIN programmes in September 2024.
Another $1.08 billion was approved in March 2025 for education and resilience projects.
FG warns against delays in loan approvals
The development comes shortly after the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria could reject World Bank loan arrangements if approval and disbursement delays continue.
Speaking during a recent meeting with a World Bank delegation in Abuja, Ogunjimi stressed that Nigeria expects faster processing timelines because the facilities are loans and not grants.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he stated.
He added that prolonged delays could affect project implementation and broader development goals.
The Accountant-General also urged the World Bank to speed up approval and disbursement processes to support Nigeria’s economic priorities and reform programmes.