The Federal Government is in advanced discussions with the World Bank over a proposed $1.25 billion loan facility aimed at supporting economic reforms, job creation and competitiveness, according to documents obtained by Channels Television.
The document, titled ‘Nigeria Actions for Investment and Jobs Acceleration’, stated that the proposed funding is expected to finance ongoing reforms across key sectors of the economy.
Channels Television reported that negotiations have reached a critical stage, with the facility scheduled to be presented for approval on June 26, 2026.
According to the document, the loan has progressed beyond the initial concept and appraisal phases and is currently at the decision-meeting stage within the World Bank’s project cycle.
If approved, the facility would become Nigeria’s second-largest World Bank loan after the $1.5 billion ‘Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing’ approved in June 2024.
The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance will serve as the implementing agency.
Nigeria’s external debt stood at $51.86 billion as of December 31, 2025, while total public debt was estimated at $110.97 billion.
The World Bank’s decision-meeting stage involves a final internal review by the institution’s management to determine whether a project should proceed to the Board of Executive Directors for formal approval.
At this stage, appraisal and negotiations are typically concluded, while financing terms, policy actions and reform commitments have already been agreed in principle between the borrower and the World Bank team.
The document stated: “The review did authorise the team to appraise and negotiate,” indicating that the project had passed earlier internal assessments and was advancing towards final consideration.
According to the World Bank, the proposed loan 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”.
The World Bank has approved approximately $9.35 billion in loans and credits for Nigeria between June 2023 and May 2026.
The financing packages covered sectors including power, education, healthcare, agriculture, social protection, renewable energy, micro, small and medium-scale enterprise financing, and economic reform support.
Among the major approvals were the $2.25 billion RESET and ARMOR reform financing package approved in June 2024, $1.57 billion for the HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience programmes approved in March 2025.
The latest negotiations come days after the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria could reject World Bank loan facilities if approval and disbursement delays exceeded six months.
In a statement issued last week by Bawa Mokwa, Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Ogunjimi said prolonged bureaucratic delays could undermine project implementation and development objectives.
The Accountant-General made the remarks in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” Ogunjimi said.
He stressed that the facilities were loans rather than grants and therefore required timely processing to align with project schedules and fiscal planning obligations.
Ogunjimi also urged the World Bank to accelerate approval and disbursement procedures to support Nigeria’s development priorities.