FG Seeks Fresh $1.25bn World Bank Facility for Economic Reforms

The Federal Government is in advanced discussions with the World Bank over a fresh $1.25 billion loan facility expected to support ongoing economic reforms, boost job creation, and improve competitiveness in key sectors of the economy.

Details of the proposed facility were contained in a World Bank document titled Nigeria Actions for Investment and Jobs Acceleration, which indicated that negotiations have moved beyond the appraisal stage and are now awaiting final consideration by the lender’s Board of Executive Directors.

According to the document, slighted by Channels Television, the loan is scheduled for possible approval on June 26, 2026, after successfully scaling internal review and negotiation phases within the World Bank project cycle.

If approved, the facility would rank among Nigeria’s largest recent loans from the global lender, behind the $1.5 billion development policy financing approved in June 2024 to support economic stabilisation and reform measures.

The document identified the Federal Republic of Nigeria as the borrower, while the Federal Ministry of Finance is expected to coordinate implementation of the programme.

The proposed loan is expected to finance reforms aimed at expanding access to electricity, digital services, and financing opportunities, while also supporting policy changes in agriculture, taxation, and trade.

According to the World Bank, the intervention 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.”

Nigeria’s growing debt profile has remained a subject of debate in recent years. Official figures showed that the country’s external debt stood at $51.86 billion as of December 31, 2025, while total public debt rose to $110.97 billion.

The latest loan discussion comes amid increased reliance on multilateral financing to support reforms, infrastructure development, and social investment programmes.

Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits for Nigeria across sectors including power, education, healthcare, agriculture, renewable energy, and social protection.

Among the major approvals during the period were the $2.25 billion RESET and ARMOR reform financing package in June 2024, as well as $1.57 billion approved for the HOPE and SPIN programmes in September of the same year.

Another $1.08 billion facility was approved in March 2025 for education and resilience projects.

The ongoing negotiations also come shortly after the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, expressed concerns over delays in the approval and disbursement of World Bank facilities.

Speaking during a meeting with a World Bank delegation in Abuja last week, Ogunjimi warned that Nigeria could reconsider future loan arrangements if bureaucratic delays continue to slow project implementation.

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

The Accountant-General stressed that since the facilities are loans rather than grants, Nigeria expects timely processing to ensure projects are delivered within planned timelines.

He urged the World Bank to speed up approval and disbursement procedures to align with the country’s fiscal planning and development priorities.

Analysts say the proposed facility reflects the government’s continued push to stabilise the economy through reforms while seeking external support to bridge funding gaps in critical sectors.