Nigeria Seeks $1.25bn World Bank Loan for Reforms, Jobs
By Aboki Forex —
The federal government is pushing for a new $1.25 billion loan from the World Bank. The facility, named Nigeria Actions for Investment and Jobs Acceleration, is expected to be approved by June 2026. That is close to the 2027 general elections.
This will be the second largest World Bank loan under President Bola Tinubu. The largest so far is the $1.5 billion Reforms for Economic Stabilisation facility approved in June 2024.
The new loan is worth about N1.70 trillion at the current exchange rate of N1,361.4 to the dollar. It will push Nigeria's total public debt from N159.28 trillion ($110.38 billion) to N160.98 trillion ($111.63 billion). External debt alone will rise from N74.43 trillion ($51.86 billion) to N76.13 trillion ($53.11 billion).
As of December 2025, Nigeria already owes the World Bank $19.89 billion. That accounts for 38.36% of the country's total external debt.
What the Loan Will Finance
The loan targets reforms across several sectors. These include expanding credit access through a new financial inclusion framework. It also covers digital economy reforms to boost e-governance and electronic transactions.
Other focus areas are electricity sector reforms to stabilise power supply, agricultural productivity programs, and trade competitiveness. The government also plans to reform tax administration and revenue mobilisation. Deepening the capital market through credit enhancement mechanisms is also on the list.
The Federal Ministry of Finance will oversee implementation under the Country Partnership Framework.
Approval Stage
A World Bank document shows the program is at the decision meeting stage. That is where the outcomes of final appraisal and negotiations are reviewed before submission to the World Bank Board. The bank has authorised teams to begin negotiations, signalling a preliminary agreement on key terms.
The new facility links to existing programs like FINCLUDE, BRIDGE, AGROW, ARMOR and DARES.
Rising World Bank Borrowing
Between June 2023 and May 2026, Nigeria has received about $9.35 billion from the World Bank. Most of this went to economic reforms, job creation, and competitiveness.
Key allocations include $2.25 billion under RESET and ARMOR, $1.57 billion under HOPE and SPIN, and $1.08 billion for education and climate resilience. Additional funding went to agriculture, power, and digital infrastructure.
If the new loan is approved, total World Bank commitments under this administration will hit roughly $10.6 billion.
Nigeria's debt service burden remains heavy. In the last quarter of 2025, domestic debt service hit N2.28 trillion. External debt service payments stood at $1.80 billion. Interest payments continue to dominate both domestic and external obligations.