Nigeria is preparing for another major World Bank loan, even as concerns grow within government over the pace of disbursement and the country’s rising debt exposure to multilateral lenders.
The Federal Government is engaging the World Bank for a fresh $1.25bn facility under a proposed programme designed to expand access to finance, electricity and digital services, while also backing reforms in tax administration, agriculture and trade competitiveness.
The programme, titled Nigeria Actions for Investment and Jobs Acceleration, reflects the administration’s attempt to move beyond stabilisation measures into a phase centred on economic expansion and job creation. But it also shows how heavily Nigeria still depends on external financing to fund reforms and infrastructure gaps at a time when fiscal pressures remain intense.
According to a World Bank Programme Information Document obtained by Nairametrics, the loan is structured as a Development Policy Financing operation, with the Federal Ministry of Finance serving as the implementing agency. The proposed approval date is June 26, 2026.
The World Bank said the facility is expected to support the government’s transition toward “inclusive growth and job creation,” following reforms already introduced since 2023, including subsidy removal, exchange rate unification, tighter fiscal controls and revenue reforms.
The document stated that the operation “builds on recent progress in restoring stability” and is intended to support Nigeria’s ambition of achieving stronger private sector-led growth.
Under the arrangement, the first phase of reforms will focus on widening access to finance, strengthening electricity access and improving digital infrastructure. It will also support policies linked to the Investment and Securities Act 2025, national metering reforms, digital governance legislation and private participation in mini-grid electricity projects.
The second phase targets competitiveness reforms through agriculture, taxation and trade. Measures under that pillar include VAT e-invoicing, seed system reforms, trade facilitation and the implementation of a minimum effective corporate tax framework.
While the World Bank acknowledged improvements in macroeconomic stability, it warned that Nigeria’s growth remains too weak to significantly reduce poverty levels.
The Bank noted that more than 139 million Nigerians were still living in poverty in 2025, despite recent reforms, while per capita income growth remains below 2 per cent. It also pointed to weak infrastructure, shallow credit systems, poor agricultural productivity, limited industrial competitiveness and governance challenges as barriers to faster economic growth.
The proposed facility would become the second-largest World Bank loan approved under President Bola Tinubu if it receives final approval. Since June 2023, Nigeria has secured about $9.35bn in World Bank loan approvals, with the new package expected to push total approvals under the current administration above $10.6bn.
That growing dependence on multilateral financing is beginning to attract concern within government circles.
The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, recently warned that Nigeria may reconsider future World Bank loan arrangements if approval and disbursement timelines continue to drag for months after agreements are signed.
His comments reflected growing frustration over delays affecting several previously approved facilities, some of which have recorded limited disbursement progress despite nearing one year after approval.
The concern is not just about access to funding. Delays in disbursement often disrupt project execution timelines, weaken planning assumptions and create financing gaps for programmes tied to infrastructure, social services and economic reforms.
The World Bank itself admitted that the proposed operation carries “high risk,” citing Nigeria’s exposure to oil price volatility, political uncertainty ahead of the 2027 elections, inflation risks linked to Middle East tensions and weak coordination across government agencies.
The warning highlights the difficult balance Nigeria is trying to maintain. On one hand, the government needs external financing to support reforms, infrastructure and economic recovery. On the other hand, rising debt levels and implementation risks continue to raise questions about sustainability, execution capacity and whether the reforms are translating into broad-based improvements for households and businesses.
For the Tinubu administration, the proposed loan is not just about funding. It is also about buying time and fiscal space while trying to push structural reforms in an economy still battling inflation, weak consumer demand and pressure on living costs.
