FG Eyes Fresh $1.25bn World Bank Loan
The Federal Government is in advanced discussions with the World Bank over a proposed $1.25 billion loan facility aimed at accelerating economic reforms, expanding job opportunities, and strengthening business competitiveness across the country.
According to documents obtained by Channels Television, the proposed facility is tied to a programme titled Nigeria Actions for Investment and Jobs Acceleration. The loan is expected to be presented for approval on June 26, 2026, having already progressed through key stages of the World Bank’s internal review process.
If approved, it would rank among Nigeria’s largest recent borrowing arrangements from the Washington based lender, second only to the $1.5 billion economic reform support facility approved in June 2024.
The Federal Republic of Nigeria is listed as the borrower in the document, with the Federal Ministry of Finance designated to oversee implementation. The World Bank stated that the proposed funding is intended to improve access to finance, electricity, and digital services, while also supporting reforms in taxation, trade, and agriculture.
The loan has now reached what the World Bank describes as the “decision meeting” stage, a near final phase in its approval process where management reviews completed negotiations before a project is forwarded to the Board of Executive Directors for final approval.
The development comes as Nigeria’s debt profile continues to attract scrutiny. According to available figures, the country’s external debt stood at $51.86 billion as of December 31, 2025, while total public debt was estimated at $110.97 billion.
The fresh loan discussions also come shortly after Accountant General of the Federation Shamseldeen Ogunjimi issued a pointed warning to the World Bank over what he described as unacceptable delays in loan approval and disbursement. Speaking during a meeting with a World Bank delegation in Abuja, Ogunjimi cautioned that Nigeria could walk away from loan arrangements if processing times extend beyond six months.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” Ogunjimi was quoted as saying.
He argued that prolonged bureaucratic delays disrupt project execution timelines and undermine development plans, stressing that the facilities involved are loans requiring eventual repayment rather than grants.
Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits to Nigeria spanning sectors including healthcare, power, agriculture, education, renewable energy, and economic reform. Notable packages during this period include the $2.25 billion RESET and ARMOR reform financing package approved in 2024, as well as over $1 billion allocated to education and resilience programmes in 2025.
The proposed $1.25 billion facility now awaits final clearance as the Federal Government continues to rely on multilateral borrowing to fund reform programmes amid fiscal pressures.