By Tony Obiechina, Abuja 

The Federal Government is in advanced discussions with the World Bank for a $1.25bn loan to support economic reforms, job creation and competitiveness, with the facility set for board approval on June 26, 2026 — making it the second-largest single World Bank loan secured under President Bola Tinubu.
The proposed loan, titled Nigeria Actions for Investment and Jobs Acceleration, has reached the decision meeting stage of the World Bank’s project cycle, a near-final internal clearance after which the project proceeds to the Board of Executive Directors for formal approval.
The review has already authorised the team to appraise and negotiate, indicating that key policy actions, financing terms and reform commitments have been substantially agreed between Nigeria and the lender.
At an exchange rate of N1,361.4 to the dollar, the facility translates to approximately N1.70tn.
If approved and fully disbursed, it would raise Nigeria’s external debt from N74.43tn to at least N76.13tn, and push total public debt from N159.28tn to at least N160.98tn.
The World Bank described the loan as designed to expand access to finance, digital and electricity services while strengthening competitiveness through tax, trade and agricultural reforms.
The Federal Ministry of Finance will serve as the implementing agency, coordinating with the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Electricity Regulatory Commission and other key agencies.
If approved, total World Bank lending to Nigeria under Tinubu would rise to approximately $10.6bn, spanning power, education, healthcare, agriculture, social protection and economic reform support.
Nigeria’s debt to the World Bank already rose by $2.08bn in one year to $19.89bn as of December 2025, accounting for 38.36 per cent of the country’s total external debt stock.
Economists are divided on the borrowing trajectory. Lagos-based economist Adewale Abimbola argued that concessionary loans tied to viable projects are not inherently problematic, saying the critical question is whether the funds are deployed effectively.
Development economist Aliyu Ilias, however, questioned the rationale for additional debt at a time when the government claims higher post-subsidy revenues.
Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, stressed that debt sustainability hinges on the country’s revenue capacity to service obligations, warning that excessive foreign borrowing risks putting pressure on reserves and weakening the exchange rate.