The Federal Government of Nigeria is now in advanced discussions with the World Bank over a proposed $1.25 billion loan, a detail revealed in a document obtained by Channels Television. Titled “Nigeria Actions for Investment and Jobs Acceleration,” the paper says the funding would back ongoing reforms, job‑creation programmes and measures to improve the country’s competitiveness.
According to the same document, negotiations have reached the “critical stage” and the loan proposal is slated for approval on 26 June 2026. The request has moved beyond the initial concept and appraisal phases and is currently at the World Bank’s decision‑meeting stage, where senior management reviews the final appraisal package before forwarding it to the Board of Executive Directors for formal endorsement. The borrower is identified as the Federal Republic of Nigeria, with the Ministry of Finance acting as the implementing agency.
If ratified, the loan would become Nigeria’s second‑largest World Bank facility after the $1.5 billion “Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing” programme approved in June 2024. As of 31 December 2025, Nigeria’s external debt stood at $51.86 billion, while total public debt was $110.97 billion.
The World Bank describes the new loan as a means 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 Bank has approved roughly $9.35 billion in loans and credits for Nigeria across sectors such as power, education, health, agriculture, renewable energy, micro‑small‑medium enterprise financing and broader economic reforms. Notable packages include the $2.25 billion RESET and ARMOR reforms (June 2024), $1.57 billion for the HOPE and SPIN programmes (September 2024) and $1.08 billion for education and resilience initiatives (March 2025).
The development follows a recent warning from the Accountant‑General of the Federation, Dr Shamseldeen Ogunjimi, that Nigeria could reject World Bank loan facilities if approval and disbursement take longer than six months. Speaking in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane, Ogunjimi stressed that the loans are not grants and therefore require timely processing to match project schedules and fiscal planning. He urged the Bank to accelerate approvals and payouts, warning that prolonged delays could compel the government to abandon the arrangements.
The outcome of the June decision will shape Nigeria’s financing landscape as it seeks to sustain reform momentum while managing a mounting debt burden. Media Talk Africa will continue to monitor the situation and report on any further developments.
