Nigeria is advancing talks with the World Bank over a fresh $1.25bn loan aimed at supporting economic reforms, job creation, and improved competitiveness, as the proposed facility moves closer to final approval.
The loan, known as the Nigeria Actions for Investment and Jobs Acceleration programme, is expected to be presented for approval on June 26, 2026. If approved, it will become one of the largest World Bank facilities secured under President Bola Tinubu’s administration.
At the current exchange rate of N1,361.4 to the dollar, the proposed facility is valued at about N1.70tn. The loan is expected to support efforts to expand access to finance, digital services, and electricity, while also strengthening competitiveness through reforms in taxation, trade, and agriculture.
The programme has already passed major stages of the World Bank’s internal review process and is currently at the decision meeting stage, where management reviews the final appraisal package before forwarding it to the Board of Executive Directors for final consideration.
The Federal Ministry of Finance will coordinate implementation of the programme alongside agencies such as the Central Bank of Nigeria, Securities and Exchange Commission, Nigerian Electricity Regulatory Commission, National Agricultural Seed Council, and the Ministry of Power.
If fully approved and disbursed, Nigeria’s external debt could rise from N74.43tn ($51.86bn) recorded at the end of 2025 to at least N76.13tn ($53.11bn). Total public debt could also increase from N159.28tn to about N160.98tn.
The proposed facility forms part of broader reform and development programmes focused on economic stability, financial inclusion, agriculture, power supply, and private sector growth.
The World Bank noted that the programme is expected to boost growth by reducing food and production costs, improving agricultural productivity, expanding digital and financial services, increasing private investment, improving electricity access, and strengthening revenue generation.
However, the bank also warned that political and governance risks remain high ahead of the 2027 general elections, noting that election-related pressures could affect the implementation of sensitive reforms.
Government officials have meanwhile urged faster approval and disbursement processes, stressing that delays in accessing development financing could affect project timelines and broader economic objectives.
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