The Federal Government is pushing forward with plans to secure a fresh $1.25bn loan from the World Bank to support economic reforms, job creation, and business competitiveness in Nigeria. According to documents reviewed by reports, the proposed facility, known as the Nigeria Actions for Investment and Jobs Acceleration programme, has entered a crucial stage in the lender’s approval process and could be approved by June 26, 2026.
If approved, the loan would become the second-largest single facility secured under President Bola Tinubu, behind the $1.5bn reform financing approved in 2024. At the current exchange rate, the proposed borrowing is estimated at about N1.70tn, highlighting the Federal Government’s continued reliance on external funding to drive key economic reforms and infrastructure development amid ongoing fiscal challenges.
The World Bank said the loan is expected to improve access to finance, electricity, and digital services while supporting reforms in agriculture, taxation, and trade. The facility will be coordinated by Nigeria’s Federal Ministry of Finance alongside agencies such as the Central Bank of Nigeria, the Nigerian Electricity Regulatory Commission, and the Securities and Exchange Commission. The bank also noted that the programme is designed to strengthen private sector growth, improve food production, and deepen financial inclusion across the country.
However, concerns continue to grow over Nigeria’s rising debt profile. Data from the Debt Management Office showed that the country’s external debt stood at $51.86bn as of December 2025, with debt to the World Bank alone rising to nearly $20bn. Economists warned that while concessional loans from multilateral institutions can support development, excessive borrowing without stronger revenue generation could worsen fiscal pressures and increase repayment risks in the future.
The World Bank itself acknowledged that political and governance risks remain high ahead of the 2027 general elections, warning that sensitive reforms could face delays or reversals. Economic experts including Muda Yusuf and Aliyu Ilias stressed that Nigeria must ensure borrowed funds are channelled into productive sectors capable of generating growth and improving the country’s ability to repay its debts over the long term.
source: punch