FG, World Bank in talks over second-largest $1.25bn loan

The Federal Government of Nigeria is currently in the final stages of negotiation with the World Bank for a $1.25 billion loan. This facility, if approved, will be the second-largest single loan secured by the Tinubu administration, trailing only the $1.5 billion economic stabilization loan approved in June 2024.

As of May 12, 2026, here are the key details regarding the proposed loan:

1. Purpose: "Nigeria Actions for Investment and Jobs Acceleration"
The loan is officially titled the "Nigeria Actions for Investment and Jobs Acceleration" program. According to World Bank documents, the funds are intended to:

Expand Infrastructure: Increase access to electricity and digital services.

Support Economic Reforms: Strengthen competitiveness through tax, trade, and agricultural reforms.

Job Creation: Facilitate investment-led growth to tackle unemployment.

Financial Inclusion: Improve access to finance for citizens and businesses.

2. Approval Timeline
Target Date: The World Bank Board is expected to officially consider and approve the loan on June 26, 2026.

Current Status: The project has moved past the concept and appraisal stages. Negotiators have already been authorized to proceed with final documentation, signaling that the bank and the Nigerian government have reached an agreement in principle.

3. Economic Context & Debt Concerns
This new borrowing comes at a time of heightened scrutiny over Nigeria's debt profile:

Total Approvals: Between June 2023 and May 2026, the World Bank has already approved approximately $9.35 billion in loans for Nigeria. This new $1.25 billion would bring the total to roughly $10.6 billion.

Debt Warnings: The Nigerian Economic Summit Group (NESG) recently warned that the country remains in a "high-risk debt zone."

Fiscal Risk: The World Bank itself noted risks associated with the upcoming 2027 general elections, specifically regarding potential "election-related spending pressures."

4. Implementation
The Federal Ministry of Finance will serve as the implementing agency for the project. Interestingly, the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, recently noted that the government might begin rejecting international loans if delays in approval and disbursement persist for more than six months, emphasizing a need for faster "value for money."

At a Glance:

Amount: $1.25 Billion (~₦1.70 Trillion at current official rates).

Projected Approval: June 26, 2026.

Implementing Agency: Federal Ministry of Finance.