Nigeria Turns To World Bank Again As Tinubu Government Pursues $1.25bn Loan Deal

President Bola Tinubu’s administration is reportedly in talks with the World Bank over a new $1.25 billion loan facility aimed at advancing economic reforms, boosting job creation, and attracting investment.....KINDLY READ THE FULL STORY HERE▶

Details of the proposed financing were outlined in a World Bank document titled “Nigeria Actions for Investment and Jobs Acceleration.”

According to Channels Television, the document indicates that discussions have reached an advanced stage, with the facility expected to be presented for approval on June 26, 2026.

This suggests the loan request has moved beyond preliminary stages such as concept and appraisal, and is now nearing final consideration by the World Bank’s Board of Executive Directors.

If approved, the facility would become one of Nigeria’s largest recent borrowings from the institution, second only to the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance is expected to oversee implementation.

Loan linked to reforms and economic competitiveness

The World Bank explained that the proposed funding is designed to support the Federal Government’s reform agenda across key sectors of the economy.

It stated that the initiative aims to “expand access to finance, digital and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.”

The document further noted that the project has cleared key internal assessments and is progressing toward final approval, with negotiations on financing terms and policy commitments already largely concluded in principle.

At this stage—referred to as the decision meeting phase—the project is in one of the final steps before being submitted to the World Bank Board for approval.

Rising debt concerns

The development comes amid growing concerns over Nigeria’s rising debt profile and reliance on external borrowing.

As of December 31, 2025, Nigeria’s external debt stood at $51.86 billion, while total public debt had risen to $110.97 billion.

Between June 2023 and May 2026, the World Bank approved about $9.35 billion in loans and credits for Nigeria across sectors including power, healthcare, education, agriculture, social protection, renewable energy, economic reforms, and support for small and medium-scale enterprises.

Major approvals include the $2.25 billion RESET and ARMOR reform package (June 2024), $1.57 billion for HOPE and SPIN programmes (September 2024), and $1.08 billion for education and resilience initiatives (March 2025).

Concerns over delays in loan processing

The latest negotiations come just days after the Accountant-General of the Federation, Shamseldeen Ogunjimi, warned that Nigeria may reconsider World Bank loans if approval and disbursement delays persist beyond six months.

During a meeting in Abuja with a World Bank delegation led by Mrs Treed Lane, Ogunjimi expressed concern over slow processing timelines.

He stressed that since the loans are repayable, Nigeria expects faster approvals and disbursements.

“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he warned.

He added that delays could disrupt project execution and affect national development planning, urging the World Bank to align disbursement timelines with implementation schedules to ensure effective use of funds.