The Federal Government is seeking a new $1.25bn loan from the World Bank to support investment reforms, job creation and economic competitiveness, amid growing concerns over Nigeria’s rising debt burden.
The proposed facility, known as Nigeria Actions for Investment and Jobs Acceleration, has advanced to a critical stage in the World Bank approval process and is scheduled for consideration by the lender’s Board of Executive Directors on June 26, 2026.
If approved, the facility would become one of the largest World Bank loans obtained under the administration of President Bola Tinubu, second only to the $1.5bn reform financing package approved in June 2024.
The fresh borrowing, estimated at about N1.70tn using the prevailing exchange rate of N1,361.4 to the dollar, comes as the Federal Government intensifies efforts to finance ongoing economic reforms and stimulate private sector growth.
Documents obtained from the World Bank showed that the proposed loan has moved beyond the appraisal stage and is currently at the decision meeting phase, where senior management reviews the final project package before it is forwarded for board approval.
The World Bank stated that the programme is aimed at supporting Nigeria’s efforts to improve access to finance, electricity and digital infrastructure, while also strengthening competitiveness through reforms in taxation, agriculture and trade.
The Federal Ministry of Finance is expected to oversee implementation of the programme.
Nigeria’s total external debt could rise from $51.86bn recorded at the end of December 2025 to about $53.11bn if the proposed facility is fully approved and disbursed. In naira terms, the country’s external debt stock would increase from N74.43tn to approximately N76.13tn.
Similarly, total public debt may climb from N159.28tn to about N160.98tn, further intensifying concerns over the sustainability of the country’s debt obligations.
The planned borrowing adds to a growing list of World Bank-backed programmes approved for Nigeria since Tinubu assumed office in 2023. Records show that the World Bank has approved about $9.35bn in loans and credits for Nigeria within the period, covering sectors such as healthcare, education, agriculture, social protection, energy and economic reforms.
Among the major approvals were the $2.25bn RESET and ARMOR reform support facilities approved in June 2024, as well as the $1.57bn HOPE and SPIN programmes approved in September 2024.
Another $1.08bn was approved in March 2025 for resilience and education-related projects.
Approval of the latest request would raise total World Bank commitments to Nigeria under the current administration to about $10.6bn.
Despite the inflow of multilateral financing, concerns remain over delays associated with the release of approved funds, as disbursements are usually tied to policy implementation benchmarks and reform conditions.
The Accountant-General of the Federation, Shamseldeen Ogunjimi, recently expressed dissatisfaction with the pace of approvals and disbursement by the World Bank.
During a meeting in Abuja with a World Bank delegation led by Treed Lane, Ogunjimi warned that Nigeria might reconsider future loan arrangements if processing delays persist beyond six months.
According to him, lengthy approval timelines could disrupt project implementation and weaken the government’s development agenda.
Responding to concerns over delayed funding, the World Bank’s Senior External Affairs Officer, Mansir Nasir, explained that disbursement of project funds is usually done in phases and depends on the structure and implementation status of each programme.
Meanwhile, figures from the Debt Management Office showed that Nigeria’s debt exposure to the World Bank rose from $17.81bn in 2024 to $19.89bn in 2025, representing an increase of about $2.08bn within one year.
The increase was driven largely by rising obligations to the International Development Association, which grew from $16.56bn to $18.51bn, while debts owed to the International Bank for Reconstruction and Development also increased from $1.24bn to $1.38bn.
The World Bank currently accounts for more than 38 per cent of Nigeria’s total external debt stock.
The proposed facility is also expected to complement ongoing intervention programmes, including FINCLUDE, BRIDGE, AGROW, ARMOR and DARES, which are aimed at expanding economic opportunities and improving productivity across key sectors of the economy.
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