The Federal Government is currently negotiating a fresh $1.25 billion loan facility with the World Bank, according to a newly obtained document.
The document, titled ‘Nigeria Actions for Investment and Jobs Acceleration’, stated that the proposed loan is intended to support ongoing economic reforms, boost job creation and improve competitiveness.
According to the report, discussions have reached an advanced stage, with the facility expected to be presented for approval on June 26, 2026. The loan has already moved beyond the concept and appraisal stages.
If approved, it would become Nigeria’s second-largest World Bank loan after the ‘$1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing’ approved in June 2024.
The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance will oversee implementation.
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while the country’s total public debt currently amounts to $110.97 billion.
The loan has now reached the decision-meeting stage of the World Bank’s approval process, where the institution’s management reviews the final appraisal package before deciding whether it should proceed to the Board of Executive Directors for final approval.
This stage comes after negotiations and appraisal have been completed, with major policy actions, financing conditions and reform commitments already agreed upon between Nigeria and the World Bank team.
The World Bank explained that the project had successfully passed earlier internal reviews and was progressing toward final approval.
According to the institution, the facility is aimed “to support the government’s efforts to expand access to finance, digital, and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.”
Between June 2023 and May 2026, the World Bank approved about $9.35 billion in loans and credits for Nigeria across sectors such as power, healthcare, education, agriculture, social protection, renewable energy and economic reforms.
Major approvals during the period include the $2.25 billion RESET and ARMOR reform financing in June 2024, $1.57 billion for HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience initiatives in March 2025.
The development comes shortly after the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria could reject World Bank loans if approval and disbursement delays extend beyond six months.
Speaking during a meeting with a World Bank delegation in Abuja, Ogunjimi stressed that Nigeria expects faster processing since the facilities are loans and not grants.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he said.
He added that lengthy approval timelines could disrupt project execution and affect broader development plans, urging the World Bank to speed up the release of funds.
Ogunjimi also noted that since the loans must be repaid, disbursement schedules should align with project timelines and the country’s fiscal planning framework.