The Federal Government of Nigeria is advancing talks with the World Bank for a fresh $1.25 billion loan aimed at strengthening economic reforms, boosting job creation, and improving national competitiveness. The proposed facility is currently at an advanced stage and is expected to be presented for approval on June 26, 2026.
According to official documents, the loan—titled Nigeria Actions for Investment and Jobs Acceleration—has already passed key appraisal and negotiation phases. This means both parties have largely agreed on the policy actions, financing terms, and reform commitments, leaving only final internal clearance and board approval before disbursement.
If approved, the loan will become one of Nigeria’s largest recent borrowings, second only to the $1.5 billion reform financing secured in June 2024. The Federal Ministry of Finance is expected to oversee implementation, ensuring that funds are directed toward priority sectors such as digital infrastructure, electricity access, agriculture, and trade reforms.
The initiative is designed to expand access to finance and critical services while improving the business environment. By focusing on areas like taxation, agriculture, and digital systems, the programme aims to stimulate private sector growth and create more employment opportunities across the country.
However, concerns about Nigeria’s rising debt profile remain. As of December 2025, the country’s external debt stood at $51.86 billion, with total public debt reaching approximately $110.97 billion. Despite this, the government continues to rely on multilateral financing to support development projects and economic stability.
Meanwhile, Shamseldeen Ogunjimi has raised concerns about delays in loan approvals and disbursements. He warned that Nigeria may reconsider future borrowing arrangements if approval timelines exceed six months, stressing that such delays could disrupt project execution and national development plans.
The outcome of the June 26 decision will be crucial, as it could shape Nigeria’s short-term economic direction, especially in areas of job creation, infrastructure development, and broader economic recovery efforts.