The Federal Government has stepped up engagement with the World Bank for a fresh $1.25bn loan to support economic reforms, job creation, and competitiveness, as findings by the newsmen showed that the facility has reached a critical stage in the lender’s approval process.
The proposed loan, titled Nigeria Actions for Investment and Jobs Acceleration, is expected to be presented for approval on June 26, 2026, about six months and 21 days before the January 16, 2027, presidential election, according to the revised timetable of the Independent National Electoral Commission.
If approved, the loan will rank as the second-largest single World Bank facility secured under President Bola Tinubu, behind only the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
At an exchange rate of N1,361.4 to the dollar, the proposed $1.25bn facility translates to about N1.70tn, showing the scale of external financing being pursued by the Federal Government amid ongoing economic reforms.
If approved and fully disbursed without any delay, the proposed $1.25bn World Bank loan, equivalent to about N1.70tn at an exchange rate of N1,361.4/$, will raise Nigeria’s external debt from N74.43tn ($51.86bn) as of December 31, 2025, to at least N76.13tn ($53.11bn).
The country’s total public debt would also rise from N159.28tn to at least N160.98tn. In dollar terms, Nigeria’s total public debt could rise from $110.97bn to about $112.22bn if the facility is eventually approved and fully disbursed.
Details of the facility were contained in a World Bank Programme Information Document obtained by The newsmen on Monday, which showed that the loan has progressed beyond the initial concept and appraisal phases.
Crucially, news reports confirmed that the operation is now at the decision meeting stage of the World Bank’s project cycle, a point at which the lender’s management reviews the final appraisal package and determines whether the project should proceed to the Board of Executive Directors for approval.
This stage typically comes after appraisal and negotiations have been substantially concluded, meaning that key policy actions, financing terms, and reform commitments have already been agreed in principle between the borrower and the World Bank team.
In the World Bank process, the decision meeting represents a near-final internal clearance, after which the project is prepared for formal Board consideration, where final approval is granted.
Supporting this position, the World Bank document stated, “The review did authorise the team to appraise and negotiate,” indicating that the project has successfully passed earlier internal checks and is advancing toward final approval.
The borrower is listed as the Federal Republic of Nigeria, while the Federal Ministry of Finance will serve as the implementing agency.
According to the World Bank, 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 fresh borrowing move comes amid growing scrutiny of Nigeria’s rising reliance on multilateral financing under Tinubu. Findings showed that the World Bank has approved about $9.35bn in loans and credits for Nigeria between June 2023 and May 2026.
These approvals span multiple sectors, including power, education, healthcare, agriculture, social protection, renewable energy, MSME financing, and economic reform support. Key packages include the $2.25bn RESET and ARMOR reform financing in June 2024, $1.57bn for HOPE and SPIN programmes in September 2024, and $1.08bn for education and resilience programmes in March 2025.
If the proposed $1.25bn facility is approved next month, total World Bank approvals under Tinubu would rise to about $10.6bn, reinforcing the bank’s role as a major external financier for Nigeria’s reform agenda.
However, NigeriaTodayTimes observed that many of the approved loans are not immediately disbursed, as fund releases are tied to the fulfilment of specific policy and reform conditions, often resulting in delays.
The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, earlier warned that Nigeria may reject loan facilities from the World Bank if delays in approval and disbursement persist, saying prolonged timelines could undermine the country’s willingness to proceed with such arrangements.
The warning was contained in a press statement last week by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.
Ogunjimi, who spoke in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane, stressed that Nigeria expects timely processing of funding requests, given that the facilities are loans and not grants.
