The Federal Government is in the final stages of securing a $1.25 billion World Bank loan to finance economic reforms, job creation, and competitiveness, with the facility expected to go before the Bank’s Board for approval on June 26, 2026.
According to a World Bank document titled ‘Nigeria Actions for Investment and Jobs Acceleration’, negotiations have progressed beyond the concept and appraisal phases and are now at the decision-meeting stage — the lender’s final internal review before Board consideration. The document lists the Federal Republic of Nigeria as borrower, with the Federal Ministry of Finance serving as the implementing agency.
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If approved, the facility will become Nigeria’s second-largest World Bank loan since June 2024, trailing only the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved last year.
The World Bank stated the loan is designed “to support the government’s efforts to expand access to finance, digital, and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.” Key policy actions, financing terms, and reform commitments have already been agreed in principle between Abuja and the Bank’s technical team.
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The decision meeting represents near-final internal clearance, after which the project will proceed to the World Bank’s Board of Executive Directors for formal approval.
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while total public debt reached $110.97 billion. Between June 2023 and May 2026, the World Bank has approved approximately $9.35 billion in loans and credits for Nigeria across power, education, healthcare, agriculture, social protection, renewable energy, MSME financing, and economic reform support.
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Major packages 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 programmes in March 2025.
The push for the new loan comes days after the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria may reject World Bank facilities if approval and disbursement delays exceed six months.
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Speaking in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane, Ogunjimi said Nigeria expects timely processing of funding requests since the facilities are loans, not grants.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he stated, according to a press release from the Office of the Accountant-General’s Director of Press and Public Relations, Bawa Mokwa.
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Ogunjimi stressed that as a responsible borrower, Nigeria should not face prolonged bureaucratic processes that disrupt project execution and broader development objectives. He urged the World Bank to “expedite the approval and disbursement of project funds” to align with Nigeria’s fiscal planning and project timelines.
“The loans carry repayment obligations, making it imperative that disbursement processes align with project schedules,” he added.
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The World Bank document confirmed that “the review did authorise the team to appraise and negotiate,” meaning the project has cleared earlier internal checks and is advancing toward final approval. If the Board gives the green light on June 26, disbursement timelines will be closely watched as Nigeria seeks to balance debt accumulation with urgent reforms in electricity, digital infrastructure, and job creation.
DDNewsOnline – Lagos
By Ayomiposi Adebanjo (A.A)
Business Correspondent
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