The Federal Government is currently negotiating a fresh $1.25 billion loan facility with the World Bank as part of efforts to support ongoing economic reforms and drive investment growth across the country.
According to documents obtained by Channels Television, the proposed financing arrangement falls under a programme titled Nigeria Actions for Investment and Jobs Acceleration, which is aimed at boosting employment opportunities, improving competitiveness, and strengthening critical sectors of the economy.
The report indicates that discussions between Nigerian authorities and the World Bank have reached an advanced stage, with the loan proposal expected to be presented for approval on June 26, 2026.
If approved, the facility would become one of the largest World Bank loans secured by Nigeria in recent years, second only to the $1.5 billion reform financing package approved in June 2024 to support economic stabilisation and transformation initiatives.
Under the arrangement, the Federal Ministry of Finance is expected to serve as the implementing agency on behalf of the Federal Government.
The proposed facility is currently at the “decision meeting” phase within the World Bank’s project approval cycle — a near-final stage where the institution’s management reviews completed appraisals and determines whether the project should proceed to its Board of Executive Directors for final approval.
Reports suggest that major negotiations, financing terms, and policy commitments have already been agreed upon in principle between both parties.
According to the World Bank, the loan is intended to support Nigeria’s efforts in expanding access to electricity, digital infrastructure, and financing opportunities, while also strengthening reforms in agriculture, taxation, and trade.
Nigeria’s debt profile has remained a major topic of national debate in recent years. As of December 31, 2025, the country’s external debt reportedly stood at about $51.86 billion, while total public debt had risen to approximately $110.97 billion.
Between June 2023 and May 2026, the World Bank approved an estimated $9.35 billion in loans and credit facilities for Nigeria across several sectors, including healthcare, education, renewable energy, agriculture, social protection, MSME support, and power sector reforms.
Some of the major interventions during the period include the $2.25 billion RESET and ARMOR reform packages approved in 2024, alongside additional funding for education, resilience, and social investment programmes.
The development comes shortly after the Accountant-General of the Federation, Shamseldeen Ogunjimi, raised concerns over delays associated with loan approvals and disbursement processes by international lenders.
Speaking during a meeting in Abuja with a World Bank delegation led by Mrs Treed Lane, Ogunjimi warned that Nigeria may reconsider future loan arrangements if approval processes continue to exceed six months.
In a statement issued by Bawa Mokwa, the Accountant-General stressed that since the facilities are loans rather than grants, Nigeria expects timely processing to ensure projects are executed according to schedule.
He maintained that prolonged bureaucratic delays could negatively affect national development plans and fiscal projections, urging the World Bank to accelerate funding approvals and disbursements for projects already under consideration.
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