Tinubu Government Seeks Fresh $1.25 Billion World Bank Loan for Economic Reforms and Job Creation
The administration of Bola Ahmed Tinubu is reportedly in advanced discussions with the World Bank over a proposed $1.25 billion loan facility aimed at driving economic reforms, boosting investment, and creating jobs across Nigeria. According to details contained in a World Bank document titled “Nigeria Actions for Investment and Jobs Acceleration,” the proposed financing package is expected to move to the approval stage later this month. Reports by Channels Television indicated that negotiations between Nigeria and the global lender have reached an advanced phase, with the facility scheduled for presentation before the World Bank’s Board of Executive Directors on June 26, 2026. If approved, the loan would become one of Nigeria’s largest recent borrowings from the World Bank, second only to the $1.5 billion economic stabilisation facility approved in June 2024. Loan to Support Key Economic Reforms The World Bank document identified the borrower as the Federal Republic of Nigeria, while the Federal Ministry of Finance is expected to oversee implementation of the programme. According to the lender, the proposed funding is intended to support ongoing reforms targeted at improving access to finance, electricity, and digital services, while also strengthening the country’s economic competitiveness.The project is also expected to support reforms in taxation, trade, and agriculture as part of broader efforts to stimulate economic growth and attract investment. “The review did authorise the team to appraise and negotiate,” the World Bank stated in the document, indicating that the proposal has successfully passed important internal assessments. The project is currently at what is known as the “decision meeting stage,” one of the final procedural steps before formal presentation to the bank’s executive board for approval. At this stage, negotiations involving financing conditions, policy commitments, and reform targets are believed to have been substantially concluded between both parties. Concerns Over Nigeria’s Rising Debt Burden The fresh loan discussions are emerging amid increasing public concern over Nigeria’s growing debt profile and dependence on foreign borrowing. As of December 31, 2025, Nigeria’s external debt was estimated at $51.86 billion, while the country’s total public debt reportedly rose to $110.97 billion. Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credit facilities for Nigeria across several sectors of the economy. The financing approvals covered projects in healthcare, power, education, agriculture, renewable energy, social protection, economic reforms, and support for micro, small, and medium-sized enterprises. Among the largest approvals within the period were the $2.25 billion RESET and ARMOR reform financing package approved in June 2024, as well as the $1.57 billion HOPE and SPIN programmes approved in September 2024. The bank also approved an additional $1.08 billion package in March 2025 for education and economic resilience support initiatives. FG Warns World Bank Over Loan Delays The latest negotiations come shortly after the Office of the Accountant-General of the Federation raised concerns over delays in the approval and disbursement of World Bank loans. During a recent meeting in Abuja with a World Bank delegation led by Mrs Treed Lane, the Accountant-General of the Federation, Shamseldeen Ogunjimi, warned that Nigeria could reconsider future borrowing arrangements if approval processes continue to exceed six months. In a statement released by the Director of Press and Public Relations, Bawa Mokwa, Ogunjimi stressed that the facilities being negotiated are repayable loans and not grants, making timely disbursement critical.“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he said. The AGF further explained that prolonged bureaucratic delays could negatively affect project implementation timelines and disrupt the country’s broader economic development plans. He urged the World Bank to speed up approval and disbursement processes to ensure alignment with Nigeria’s fiscal planning framework and implementation schedules.
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Marshall Bassey
May 12, 2026
17 minutes ago
