BREAKING: Tinubu govt seeks fresh $1.2 billion World Bank loan

The administration of President Bola Tinubu is preparing to secure another major external loan from the World Bank, as Nigeria advances plans for a fresh $1.25bn facility that could become the second-largest multilateral loan obtained under the current government.

The proposed financing, titled Nigeria Actions for Investment and Jobs Acceleration, is said to have reached an advanced stage in the approval process and is expected to be presented to the World Bank board on June 26, 2026.

According to available documents, the facility has moved beyond initial assessment phases, indicating intensified negotiations between Nigerian authorities and the international lender.

If approved, the loan would rank second only to the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing secured in June 2024 under the Tinubu administration.

At the prevailing exchange rate of N1,361.4 to the dollar, the proposed $1.25bn facility is valued at about N1.70tn, underscoring the scale of external financing being pursued to support ongoing reforms.

The development comes amid growing concerns over Nigeria’s rising debt burden and its increasing reliance on multilateral funding to stabilise the economy, drive reforms, and stimulate job creation.

Data from the World Bank programme documents suggest that if approved and fully disbursed, Nigeria’s external debt could rise from N74.43tn ($51.86bn) as of December 31, 2025, to about N76.13tn ($53.11bn).

Similarly, the country’s total public debt stock may increase from N159.28tn to approximately N160.98tn, further deepening concerns about debt sustainability.

The proposed facility is expected to fund reforms aimed at improving economic competitiveness, attracting private sector investment, and expanding job opportunities across key sectors.

However, the development is likely to reignite public debate over Nigeria’s borrowing strategy, especially as citizens continue to grapple with inflation, rising living costs, and the impact of ongoing economic reforms.

Earlier, Nigeria’s Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that the federal government could reconsider World Bank loan arrangements if delays in approval and disbursement persist.

He stressed that prolonged processing timelines could disrupt project execution, noting that “if approvals take more than six months, the Nigerian Government may no longer honour such arrangements.”

With the 2027 general elections approaching, concerns have also been raised over the timing and long-term implications of Nigeria’s expanding debt profile.

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