The Federal Government is advancing discussions with the World Bank over a proposed $1.25 billion loan aimed at supporting economic reforms and job creation.
Details of the facility were contained in a document titled ‘Nigeria Actions for Investment and Jobs Acceleration’, which shows that negotiations have reached a critical stage, according to Channels Television.
The loan is expected to be presented for approval on June 26, 2026.
If endorsed, the facility would become one of the country’s largest recent borrowings from the World Bank, second only to the $1.5 billion reform financing approved in June 2024.
The Federal Republic of Nigeria is listed as the borrower, with the Federal Ministry of Finance designated to coordinate implementation.
Nigeria’s external debt profile stood at $51.86 billion as of December 31, 2025, while total public debt has risen to $110.97 billion.
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The loan has now entered the decision-meeting phase within the World Bank’s approval process. At this point, the institution’s management reviews the final appraisal before forwarding the proposal to its Board of Executive Directors for consideration.
By this stage, negotiations and technical assessments have largely been concluded, with both sides agreeing in principle on key reforms, financing conditions, and policy commitments.
According to the document, “The review did authorise the team to appraise and negotiate,” indicating that the proposal has cleared earlier internal hurdles and is nearing final approval.
The World Bank explained that the funding is intended “to support the government’s efforts to expand access to finance, digital, and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.”
Over the past three years, Nigeria has secured about $9.35 billion in World Bank loans and credits, covering sectors such as energy, education, healthcare, agriculture, and social protection.
Major approvals include $2.25 billion under the RESET and ARMOR programmes in June 2024, $1.57 billion for HOPE and SPIN initiatives in September 2024, and $1.08 billion for education and resilience programmes in March 2025.