FG Seeks World Bank Approval For $1.25bn Loan

The Federal Government has intensified discussions with the World Bank over a proposed $1.25bn loan aimed at strengthening economic reforms, boosting job creation, and improving national competitiveness, as the facility moves closer to final approval.

Findings indicate that the loan, named Nigeria Actions for Investment and Jobs Acceleration, is already at an advanced stage in the World Bank’s approval process and is expected to be presented for consideration on June 26, 2026. The timing places the decision about six months and 21 days before the January 16, 2027, presidential election, according to the Independent National Electoral Commission’s revised timetable.

If approved, the facility will become the second-largest World Bank loan obtained under President Bola Tinubu’s administration, following the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing secured in June 2024.

FG seeks World Bank approval for $1.25bn loan

At an exchange rate of N1,361.4 to the dollar, the $1.25bn loan translates to about N1.70tn, underscoring the scale of external borrowing being pursued alongside ongoing economic reforms.

Should the funds be fully disbursed, Nigeria’s external debt stock would rise from N74.43tn ($51.86bn) as of December 31, 2025, to roughly N76.13tn ($53.11bn). The country’s total public debt would also increase from N159.28tn to about N160.98tn, while dollar-denominated total debt could climb to around $112.22bn.

Details of the facility were contained in a World Bank Programme Information Document obtained, showing that the project has already moved beyond early conceptual stages into advanced processing.

The report further confirmed that the operation is currently at the decision meeting stage of the World Bank’s project cycle. At this point, the lender’s management reviews the final appraisal package before deciding whether to forward it to the Board of Executive Directors for final approval.

This stage typically follows completed appraisal and negotiations, meaning key reforms, funding terms, and policy commitments have already been agreed in principle between Nigeria and the World Bank team. The decision meeting is regarded as a near-final internal clearance before Board-level approval.

The document also noted, “The review did authorise the team to appraise and negotiate,” confirming that earlier checks have been passed and the process is now advancing toward final approval.

The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance will oversee implementation. The programme is designed to expand access to finance, digital services, and electricity, while strengthening competitiveness through reforms in taxation, trade, and agriculture.