President Bola Tinubu’s administration is moving to secure a fresh $1.25 billion loan from the World Bank as the government intensifies economic reforms and prepares for major spending ahead of the 2027 general election.
According to a World Bank document titled Nigeria Actions for Investment and Jobs Acceleration, negotiations for the loan have already reached an advanced stage and the proposal is expected to go before the World Bank Board of Executive Directors for final approval on June 26, 2026.
The planned facility is aimed at helping the Federal Government fund economic reforms, create jobs, improve investment opportunities, and strengthen key sectors of the economy.
Reports indicate that the loan process has moved beyond the early concept and appraisal stages, meaning discussions between Nigeria and the World Bank are already nearing completion.
If approved, the new facility would become one of Nigeria’s biggest recent loans from the World Bank. It would rank just behind the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The World Bank document identified the Federal Republic of Nigeria as the borrower, while the Federal Ministry of Finance is expected to oversee the implementation of the programme.
The proposed funding is expected to support Tinubu’s economic reform agenda in several sectors. The World Bank said the money would help expand access to finance, improve digital and electricity services, and boost competitiveness through reforms in taxation, trade, and agriculture.
The global lender also confirmed that the project had successfully passed important internal checks and had been cleared for negotiation and appraisal.
According to the document, “The review did authorise the team to appraise and negotiate.”
At the current decision meeting stage, most negotiations involving financing terms, reform targets, and policy commitments have already been largely agreed in principle between both sides.
The latest borrowing plan is coming at a time when concerns continue to grow over Nigeria’s rising debt profile and dependence on foreign loans.
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while the country’s total public debt has climbed to $110.97 billion.
Since Tinubu assumed office in June 2023, the World Bank has approved about $9.35 billion in loans and credit facilities for Nigeria across several sectors of the economy.
The approvals covered power, healthcare, education, agriculture, social protection, renewable energy, economic reforms, and funding support for micro, small, and medium scale businesses.
Some of the largest approvals include 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 approved in March 2025.
The fresh negotiations are also coming just days after the Accountant General of the Federation, Shamseldeen Ogunjimi, warned that Nigeria may stop accepting World Bank loans if approval and disbursement delays continue to exceed six months.
Speaking during a meeting with a World Bank delegation led by Mrs Treed Lane in Abuja, Ogunjimi expressed frustration over long delays in processing loan applications.
In a statement released by the Director of Press and Public Relations at the Office of the Accountant General of the Federation, Bawa Mokwa, Ogunjimi stressed that Nigeria expected faster approval processes because the facilities are loans that must be repaid and not grants.
He warned that if approvals continue to take longer than six months, the Nigerian government may no longer honour such arrangements.
According to him, unnecessary delays could disrupt project execution, affect implementation timelines, and weaken the country’s development plans.
Ogunjimi also urged the World Bank to speed up the approval and release of funds so they align properly with Nigeria’s fiscal plans and national development priorities.
He maintained that because the loans come with repayment obligations, disbursement timelines must match project implementation schedules to ensure the funds are properly utilised.
