The Federal Government of Nigeria is currently engaged in advanced discussions with the World Bank regarding a proposed loan of $1.25 billion. This information was disclosed in a document obtained by Channels Television, titled “Nigeria Actions for Investment and Jobs Acceleration.” The document indicates that the funding aims to support ongoing reforms, job creation programs, and initiatives designed to enhance the country’s competitiveness. Negotiations have now reached a “critical stage,” with the loan proposal scheduled for approval on June 26, 2026.
The loan request has progressed beyond the initial concept and appraisal phases and is now at the World Bank’s decision-meeting stage. During this phase, senior management reviews the final appraisal package before it is sent to the Board of Executive Directors for formal endorsement. The borrower is identified as the Federal Republic of Nigeria, with the Ministry of Finance designated as the implementing agency. If approved, this loan would become Nigeria’s second-largest World Bank facility, following the $1.5 billion “Reforms for Economic Stabilization to Enable Transformation Development Policy Financing” program, which was approved in June 2024.
As of December 31, 2025, Nigeria’s external debt was reported at $51.86 billion, while the total public debt reached $110.97 billion. The World Bank characterizes the new loan as a means to support the government’s efforts to expand access to finance, digital and electricity services, and to strengthen competitiveness through reforms in tax, trade, and agriculture. Between June 2023 and May 2026, the Bank has approved approximately $9.35 billion in loans and credits for Nigeria across various sectors, including power, education, health, agriculture, renewable energy, and micro-small-medium enterprise financing.
Significant packages during this period include the $2.25 billion RESET and ARMOR reforms approved in June 2024, $1.57 billion for the HOPE and SPIN programs approved in September 2024, and $1.08 billion for education and resilience initiatives approved in March 2025. This development follows a warning from the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, who cautioned that Nigeria might reject World Bank loan facilities if the approval and disbursement processes exceed six months. During a courtesy visit from a World Bank delegation led by Mrs. Treed Lane in Abuja, Ogunjimi emphasized that these loans are not grants and require timely processing to align with project schedules and fiscal planning. He urged the Bank to expedite approvals and disbursements, warning that prolonged delays could lead the government to abandon these arrangements.
The outcome of the decision in June will significantly influence Nigeria’s financing landscape as the country strives to maintain reform momentum while managing an increasing debt burden. Media Talk Africa will continue to monitor the situation and provide updates on any further developments.
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