Nigeria in Talks With World Bank for $1.25bn Loan to Boost Investment and Jobs

The Federal Government is in advanced talks with the World Bank for a fresh $1.25 billion loan, and the deal is closer to approval than most people realise.

Documents obtained by Punch show the loan, titled “Nigeria Actions for Investment and Jobs Acceleration,” has already passed the appraisal and negotiation phases and is now at the World Bank’s decision meeting stage, one step before formal board approval. If the board signs off on June 26, 2026, as scheduled, the money heads Nigeria’s way.

What the Money Is For

The World Bank says the facility 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.” In plain terms: economic restructuring, job creation, and better business conditions.

The Federal Ministry of Finance will serve as the implementing agency, with the Federal Republic of Nigeria listed as the borrower.

How Big Is This?

At current exchange rates (roughly N1,361 to the dollar), $1.25 billion works out to about N1.70 trillion. That is significant money on its own, but the timing matters too. If approved, the funds land less than seven months before the January 2027 INEC deadline window for the presidential election.

If fully disbursed, the loan would push Nigeria’s external debt from N74.43 trillion ($51.86 billion) as of December 2025 to at least N76.13 trillion. Total public debt would rise from N159.28 trillion to around N160.98 trillion.

On the size question: Punch confirmed this would be the second-largest single World Bank facility secured under President Tinubu’s administration, behind only the $1.5 billion “Reforms for Economic Stabilisation to Enable Transformation” loan approved in June 2024. This is not a claim about it being the second-largest World Bank loan Nigeria has ever received. That broader claim could not be independently verified and has been excluded from this report.

Borrowing While Complaining About Delays

There is a touch of irony in the timing. The government this week threatened to reject multilateral loans that take more than six months to process. Meanwhile, it is actively pushing to fast-track a fresh $1.25 billion facility from the same lender.

Critics have been growing louder about Nigeria’s rising dependence on multilateral financing under Tinubu. External borrowing has become a key pillar of the administration’s economic strategy, and this loan adds another substantial layer to a debt profile already drawing scrutiny from economists and legislators.

Sources: Punch, Nairametrics