The Federal Government is in final talks with the World Bank for a $1.25 billion loan to support economic reforms, job creation, and competitiveness, with approval expected by late June 2026.
The facility, titled _Nigeria Actions for Investment and Jobs Acceleration_, has moved beyond concept and appraisal stages and is scheduled for presentation to the World Bank Board on June 26, 2026. If approved, it will be the second-largest single World Bank facility secured under President Bola Tinubu, behind only the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation programme approved in June 2024.
At an exchange rate of N1,361.4 to the dollar, the loan translates to about N1.70 trillion. Full disbursement would push Nigeria’s external debt from N74.43 trillion ($51.86 billion) as of December 31, 2025, to at least N76.13 trillion ($53.11 billion). Total public debt would rise from N159.28 trillion to at least N160.98 trillion, or from $110.97 billion to about $112.22 billion.
The talks come amid rising scrutiny of Nigeria’s debt exposure to the World Bank. Nigeria’s debt to the lender grew from $17.81 billion at the end of 2024 to $19.89 billion at the end of 2025, an 11.7% increase. World Bank loans now account for 38.36% of Nigeria’s total external debt stock of $51.86 billion.
The timing is politically significant. The loan is set for approval just six months and 21 days before the January 16, 2027, presidential election, according to INEC’s revised timetable. Government officials say the funds will target job creation, private sector-led growth, and competitiveness, aligning with Tinubu’s economic reform agenda.
But concerns over disbursement delays persist. The Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, warned last week that Nigeria may withdraw from future World Bank loan arrangements if approvals take longer than six months. He noted that about six World Bank loans worth $2 billion signed in 2024 are yet to move, despite board approval.
The World Bank has defended its partnership, citing Nigeria’s ongoing reforms on exchange rate unification, fiscal discipline, and tax administration. The bank says the facility will help accelerate sustainable growth and job creation.
For now, all eyes are on June 26. If the board gives the green light, Nigeria will lock in one of its largest external loans yet, deepening its reliance on multilateral financing to navigate economic headwinds.