World Bank Set To Approve $1.13bn Loan For Nigeria’s Economic Reforms

The World Bank is set to consider the approval of a fresh $1.13 billion loan facility for Nigeria aimed at supporting economic reforms, job creation, and investment growth.

According to a World Bank document titled Nigeria Actions for Investment and Jobs Acceleration, the proposed funding will support ongoing reforms focused on improving competitiveness, expanding employment opportunities, and strengthening key sectors of the economy.

The document revealed that discussions on the loan have reached an advanced stage, with the facility expected to be presented for approval on June 26, 2026. The project has already moved beyond the concept and appraisal stages of the bank’s approval process.

If approved, the facility would become Nigeria’s second-largest World Bank loan package after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

The borrower is listed as the Federal Republic of Nigeria, 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 the country’s total public debt has risen to $110.97 billion.

The loan is currently at the decision-meeting phase of the World Bank’s project cycle — a stage where the institution’s management reviews the final appraisal package before deciding whether to forward the project to the Board of Executive Directors for final approval.

At this stage, negotiations and key reform commitments between Nigeria and the World Bank team are largely concluded, with financing terms already agreed upon in principle.

The World Bank document stated that the review process had authorised the project team “to appraise and negotiate,” indicating that the proposal has successfully passed key internal assessments and is advancing toward final approval.

According to the Bank, the loan is designed to support Nigeria’s efforts to improve access to finance, digital services, and electricity while also boosting competitiveness through reforms in taxation, trade, and agriculture.

Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion in loans and credits for Nigeria across multiple sectors, including power, healthcare, education, agriculture, renewable energy, MSME financing, social protection, and economic reforms.

Major approvals during the period include 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 initiatives approved in March 2025.

The latest development comes shortly after the Accountant-General of the Federation, Shamseldeen Babatunde Ogunjimi, warned that Nigeria could reject future World Bank loans if approval and disbursement delays continue beyond six months.

Speaking during a meeting in Abuja with a World Bank delegation led by Mrs Treed Lane, Ogunjimi stressed that Nigeria expects faster processing timelines because the facilities are repayable loans rather than grants.

“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he said, expressing concern over bureaucratic delays affecting project implementation and development goals.

He further urged the World Bank to accelerate the approval and disbursement process to ensure that projects align with Nigeria’s fiscal planning and execution timelines.