The administration of Bola Tinubu is reportedly in advanced discussions with the World Bank over a fresh $1.25 billion loan facility aimed at supporting economic reforms, job creation, and investment expansion in Nigeria.
According to details contained in a World Bank document titled “Nigeria Actions for Investment and Jobs Acceleration,” the proposed facility is expected to strengthen key sectors of the economy and improve the country’s investment climate.
Reports indicate that negotiations between Nigeria and the global lender have progressed significantly, with the loan proposal scheduled to be presented for approval on June 26, 2026, before the World Bank’s Board of Executive Directors.
The move suggests the request has advanced beyond the preliminary concept and appraisal stages and is now nearing final consideration.
If approved, the facility would become one of Nigeria’s biggest recent borrowings from the World Bank, second only to the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The World Bank document listed the borrower as the Federal Republic of Nigeria, while the Federal Ministry of Finance is expected to oversee implementation of the programme.
Loan Targets Key Economic Reforms
According to the World Bank, the proposed funding is intended to support the Federal Government’s ongoing reform agenda across several strategic sectors.
The lender stated that the facility would help expand access to finance, electricity, and digital services while also improving competitiveness through reforms in taxation, trade, and agriculture.
“The review did authorise the team to appraise and negotiate,” the World Bank document stated, indicating that the project had passed major internal review stages and was moving closer to approval.
At the current “decision meeting” stage, negotiations over financing conditions, policy reforms, and implementation commitments are believed to have been largely concluded between both parties.
Rising Debt Concerns Persist
The latest loan talks are coming amid growing public concerns over Nigeria’s increasing debt profile and reliance on external borrowing.
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while the country’s total public debt reportedly rose to $110.97 billion.
Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits for Nigeria across sectors including power, healthcare, education, agriculture, renewable energy, social protection, and support for small businesses.
Among the major approvals were the $2.25 billion RESET and ARMOR reform financing package approved in June 2024, the $1.57 billion financing for the HOPE and SPIN programmes approved in September 2024, and the $1.08 billion education and resilience support package cleared in March 2025.
FG Warns Over Loan Approval Delays
The fresh negotiations also come shortly after the Accountant-General of the Federation, Shamseldeen Ogunjimi, warned that Nigeria could reconsider World Bank loan arrangements if approval and disbursement processes continue to suffer prolonged delays.
Speaking during a meeting with a World Bank delegation led by Mrs. Treed Lane in Abuja, Ogunjimi stressed the need for faster processing of loan applications, noting that the facilities are repayable loans rather than grants.
He warned that delays extending beyond six months could affect project execution timelines and disrupt national development plans.
Ogunjimi further urged the World Bank to speed up approval and disbursement processes to ensure that funding aligns with Nigeria’s fiscal planning and implementation schedules.
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