FG Makes Another Request to World Bank to Borrow $1.2bn
- Nigeria is requesting a $1.25bn loan from the World Bank for reforms, job creation and competitive enhancement
- This is expected to be approved by June and will further increase Nigeria's growing public debt level
- Nigeria's loan from the World Bank is also on the rise as the Tinubu administration seeks foreign funds for projects
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The federal government has intensified efforts to secure a new $1.25 billion World Bank loan, with the facility expected to be approved in June 2026, close to Nigeria’s elections scheduled for 2027.
Punch reports that the proposed loan, titled Nigeria Actions for Investment and Jobs Acceleration, is the second-largest World Bank loan under the Tinubu administration after the Reforms for Economic Stabilisation facility of $1.5bn, which was approved in June 2024.
Source: Getty Images
The loan would total about N1.70 trillion (N1,361.4/$), indicating an increased dependence on foreign loans in the midst of reforms.
Impact and debt exposure
Total public debt would rise from N159.28 trillion ($110.38 billion) to N160.98 trillion ($111.63 billion) in total and dollar terms, respectively. External debt increased from N74.43 trillion ($51.86 billion) to N76.13 trillion ($53.11 billion).
Nigeria's total debt obligation to the World Bank as of December 2025 is $19.89 billion, representing 38.36% of the total external debt.
The $1.25 billion facility will be on reforms across important segments of the economy, such as:
- The expansion of credit availability through the introduction of a new financial inclusion framework.
- Digital economy reforms to enhance e-governance and e-transactions;
- The reform of the electricity sector with a view to stabilising the electricity supply;
- Programs that promote productivity in agriculture and enhance trade competitiveness;
- Reforms for tax administration and revenue mobilisation;
- Deepening the capital market through innovative credit enhancement mechanisms.
The Federal Ministry of Finance will be in charge of implementation under the overarching framework of the Country Partnership Framework.
Project status and approval stage
A review of a World Bank document indicated that the program is currently at the "decision meeting" phase, where the outcomes of the final appraisal and negotiations are considered before the submission of the facility to the World Bank Board, Channels reports.
The lending institution has stated that the teams have been authorised to commence negotiations, pointing to a preliminary understanding on key policy terms.
This facility is connected to existing programs like FINCLUDE, BRIDGE, AGROW, ARMOR and DARES.
Source: Getty Images
Nigeria's Expanding Exposure to the World Bank
In the period between June 2023 and May 2026, Nigeria has received about $9.35 billion from the World Bank across a number of sectors, most of which went to support economic reforms, employment creation and also to enhance competitiveness.
The programs that got the funding are as follows:
- $2.25 billion under RESET and ARMOR;
- $1.57 billion under HOPE and SPIN;
- $1.08 billion in financing for education and climate resilience programs;
- Additional funding for various sectors, including agriculture, power, and digital infrastructure.
If the new loan is approved, the total commitment from the World Bank under the current administration will rise to approximately $10.6 billion.
FG service China, other debts
Legit.ng earlier reported that Nigeria’s debt service obligations surged in the final quarter of 2025, with total domestic debt service rising to N2.28 trillion, while external debt service payments stood at $1.80 billion.
The figures captured in the Debt Management Office public debt report released on Monday, April 13, revealed mounting fiscal pressures on the government, as interest payments continued to dominate debt servicing costs across both domestic and external obligations.
Source: Legit.ng
