The federal government is intensifying efforts to secure a new $1.25 billion loan from the World Bank, with approval expected in June 2026, ahead of Nigeria's 2027 elections. The facility, titled Nigeria Actions for Investment and Jobs Acceleration, is the second-largest World Bank loan under President Bola Tinubu's administration, following the $1.5 billion Reforms for Economic Stabilisation facility approved in June 2024.
Loan Details and Impact
The loan, equivalent to about N1.70 trillion at an exchange rate of N1,361.4 per dollar, will increase Nigeria's total public debt from N159.28 trillion ($110.38 billion) to N160.98 trillion ($111.63 billion). External debt will rise from N74.43 trillion ($51.86 billion) to N76.13 trillion ($53.11 billion). Nigeria's total debt to the World Bank stood at $19.89 billion as of December 2025, representing 38.36% of total external debt.
Key Reform Areas
The loan will support reforms across several sectors, including:
- Expansion of credit availability through a new financial inclusion framework.
- Digital economy reforms to enhance e-governance and e-transactions.
- Electricity sector reforms to stabilise power supply.
- Productivity programs in agriculture and trade competitiveness.
- Tax administration and revenue mobilisation reforms.
- Deepening the capital market through innovative credit enhancement mechanisms.
The Federal Ministry of Finance will implement the program under the Country Partnership Framework.
Approval Stage
A World Bank document indicates the program is at the 'decision meeting' phase, where final appraisal and negotiation outcomes are considered before submission to the World Bank Board. Teams have been authorised to commence negotiations, signalling preliminary agreement on key policy terms. The facility is linked to existing programs such as FINCLUDE, BRIDGE, AGROW, ARMOR, and DARES.
Nigeria's Expanding World Bank Exposure
Between June 2023 and May 2026, Nigeria received about $9.35 billion from the World Bank across various sectors. Key funding includes $2.25 billion under RESET and ARMOR, $1.57 billion under HOPE and SPIN, $1.08 billion for education and climate resilience, and additional funds for agriculture, power, and digital infrastructure. If approved, total World Bank commitments under the current administration will reach approximately $10.6 billion.
Debt Service Pressures
Nigeria's debt service obligations surged in Q4 2025, with domestic debt service rising to N2.28 trillion and external debt service payments at $1.80 billion, according to the Debt Management Office report released on April 13, 2025. Interest payments continue to dominate debt servicing costs, reflecting mounting fiscal pressures.
