₦airaland Forum

The Federal Government has stepped up engagement with the World Bank for a fresh $1.25bn loan to support economic reforms, job creation, and competitiveness, as findings by The PUNCH showed that the facility has reached a critical stage in the lender’s approval process

The proposed loan, titled Nigeria Actions for Investment and Jobs Acceleration, is expected to be presented for approval on June 26, 2026, about six months and 21 days before the January 16, 2027, presidential election, according to the revised timetable of the Independent National Electoral Commission.

If approved, the loan will rank as the second-largest single World Bank facility secured under President Bola Tinubu, behind only the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

At an exchange rate of N1,361.4 to the dollar, the proposed $1.25bn facility translates to about N1.70tn, showing the scale of external financing being pursued by the Federal Government amid ongoing economic reforms.

If approved and fully disbursed without any delay, the proposed $1.25bn World Bank loan, equivalent to about N1.70tn at an exchange rate of N1,361.4/$, will raise Nigeria’s external debt from N74.43tn ($51.86bn) as of December 31, 2025, to at least N76.13tn ($53.11bn).

The country’s total public debt would also rise from N159.28tn to at least N160.98tn. In dollar terms, Nigeria’s total public debt could rise from $110.97bn to about $112.22bn if the facility is eventually approved and fully disbursed.

Details of the facility were contained in a World Bank Programme Information Document obtained by The PUNCH on Monday, which showed that the loan has progressed beyond the initial concept and appraisal phases.

Crucially, The PUNCH confirmed that the operation is now at the decision meeting stage of the World Bank’s project cycle, a point at which the lender’s management reviews the final appraisal package and determines whether the project should proceed to the Board of Executive Directors for approval.

This stage typically comes after appraisal and negotiations have been substantially concluded, meaning that key policy actions, financing terms, and reform commitments have already been agreed in principle between the borrower and the World Bank team.

In the World Bank process, the decision meeting represents a near-final internal clearance, after which the project is prepared for formal Board consideration, where final approval is granted.

Supporting this position, the World Bank document stated, “The review did authorise the team to appraise and negotiate,” indicating that the project has successfully passed earlier internal checks and is advancing toward final approval.

The borrower is listed as the Federal Republic of Nigeria, while the Federal Ministry of Finance will serve as the implementing agency.

According to the World Bank, the loan is designed “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 fresh borrowing move comes amid growing scrutiny of Nigeria’s rising reliance on multilateral financing under Tinubu. Findings showed that the World Bank has approved about $9.35bn in loans and credits for Nigeria between June 2023 and May 2026.

These approvals span multiple sectors, including power, education, healthcare, agriculture, social protection, renewable energy, MSME financing, and economic reform support. Key packages include the $2.25bn RESET and ARMOR reform financing in June 2024, $1.57bn for HOPE and SPIN programmes in September 2024, and $1.08bn for education and resilience programmes in March 2025.

If the proposed $1.25bn facility is approved next month, total World Bank approvals under Tinubu would rise to about $10.6bn, reinforcing the bank’s role as a major external financier for Nigeria’s reform agenda.

However, The PUNCH observed that many of the approved loans are not immediately disbursed, as fund releases are tied to the fulfilment of specific policy and reform conditions, often resulting in delays.

Govt warns

The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, earlier warned that Nigeria may reject loan facilities from the World Bank if delays in approval and disbursement persist, saying prolonged timelines could undermine the country’s willingness to proceed with such arrangements.

The warning was contained in a press statement last week by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa.

Ogunjimi, who spoke in Abuja during a courtesy visit by a World Bank delegation led by Mrs Treed Lane, stressed that Nigeria expects timely processing of funding requests, given that the facilities are loans and not grants.

He said, “If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” highlighting concerns over bureaucratic delays in accessing development financing.

The AGF noted that as a responsible borrower, Nigeria should not be subjected to prolonged approval processes that could affect project execution timelines and broader development objectives. He therefore urged the World Bank to “expedite the approval and disbursement of project funds to Nigeria” to support the country’s priorities.

Ogunjimi emphasised that the loans carry repayment obligations, making it imperative that disbursement processes align with project schedules and fiscal planning frameworks.

However, the Senior External Affairs Officer at the World Bank, Mansir Nasir, earlier told The PUNCH that funds for projects financed by the institution were not disbursed at once but in instalments, depending on the nature of the project and financing instruments.

The PUNCH also reported that Nigeria’s debt to the World Bank rose by $2.08bn in one year to $19.89bn as of December 31, 2025, according to an analysis of external debt stock data released by the Debt Management Office.

The figure represents an 11.7 per cent increase from the $17.81bn owed to the global lender as of December 31, 2024. The World Bank debt comprises loans from the International Development Association and the International Bank for Reconstruction and Development.

IDA provides concessional grants and loans to low-income countries, while IBRD provides financial products and policy advice mainly to middle-income and creditworthy developing countries.

DMO data showed that Nigeria’s IDA debt rose from $16.56bn in 2024 to $18.51bn in 2025, an increase of $1.94bn or 11.73 per cent. IBRD exposure also increased from $1.24bn to $1.38bn, representing an increase of $141.84m or 11.41 per cent.

The increase means World Bank loans accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86bn as of the end of 2025.

The proposed loan is aligned with the World Bank’s Country Partnership Framework and forms part of a broader package of interventions, including FINCLUDE, BRIDGE, AGROW, ARMOR, and DARES programmes.

According to the bank, the facility is expected to drive growth through multiple channels, including reduced food and input costs, improved agricultural productivity, expansion of digital services, deeper financial markets, increased private investment, improved electricity access, and stronger tax revenue mobilisation.

“The $1.25bn standalone operation builds on recent progress in restoring stability and underpins the Government’s shift toward an inclusive growth model,” the document stated.

Implementation of the programme will be coordinated by the Federal Ministry of Finance, working with key agencies including the Central Bank of Nigeria, Securities and Exchange Commission, National Agricultural Seed Council, Nigerian Electricity Regulatory Commission, and the Ministry of Power.

However, it warned that the operation carries significant risks. “Overall, the risk to this DPF is assessed as high. Political and governance risks are elevated ahead of the 2027 elections, with pressures that could delay or reverse sensitive reforms,” the bank stated.

Economists speak

Economists warn that the rising loan pipeline, while potentially beneficial for long-term development, could deepen fiscal pressures if not matched with stronger domestic revenue mobilisation and prudent expenditure management.

Lagos-based economist, Adewale Abimbola, reacting to the rising World Bank commitments to Nigeria, said loans from multilateral institutions such as the World Bank are largely concessionary, with interest rates typically below market levels and longer repayment tenors

He noted that the critical question is not whether Nigeria should be borrowing, but whether the loans are structured and deployed effectively. “If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” Abimbola explained. “Borrowing isn’t bad; what matters is utilisation.”

He stressed that the economic impact of such loans depends on how well they are channelled into projects that can generate sustainable growth, strengthen revenue, and improve public services over time.

Development economist and CEO of CSA Advisory, Dr Aliyu Ilias, has expressed strong reservations about Nigeria’s rising debt profile amid rising World Bank loans.

While acknowledging that borrowing is not inherently bad for an economy, he questioned the rationale for taking on more debt at a time when the government claims to have higher revenues.

Ilias pointed out that, following the removal of the fuel subsidy, Tinubu had announced increased revenue inflows, further suggesting that the government should be able to fund projects without resorting to heavy borrowing.

Economist and CEO of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, stressed that borrowing should always be backed by sound economic reasoning and clear development priorities.

Yusuf emphasised that the key issue is debt sustainability, which depends primarily on the country’s revenue capacity to service its obligations.

Without a strong cash flow to meet repayment schedules, he warned, Nigeria risks falling into a vicious cycle of borrowing to service existing loans, perpetuating fiscal vulnerability. He said it is essential that projects funded by loans directly support the economy’s capacity to repay.

According to him, Nigeria should be cautious with foreign loans due to the exchange rate risks they pose, noting that domestic debt is generally easier to manage. Excessive foreign borrowing, he warned, could put pressure on the country’s reserves and further weaken the exchange rate.

He stressed that a disciplined approach to debt sustainability will be crucial for Nigeria to avoid long-term fiscal distress.

Debt outlook fragile

Meanwhile, the Nigerian Economic Summit Group has warned that Nigeria’s debt outlook remains fragile despite signs of surface-level improvement, stressing that underlying fiscal pressures are still elevated and could worsen with continued borrowing.

In its Debt Burden Monitor report released on Monday, the NESG said while headline indicators suggest some stabilisation, the country’s debt position remains “a nuanced but concerning picture” as structural weaknesses persist beneath the surface.

The group noted that Nigeria’s Debt Burden Index declined to 70.9 points in 2024 from 83.6 points in 2023, which could give the impression that debt stress is easing. However, it cautioned that the improvement was largely driven by a temporary moderation in debt service pressures rather than any real strengthening of fiscal capacity.

It further pointed out that public debt-to-GDP rose to 40.6 per cent in 2024, reflecting continued reliance on borrowing to finance fiscal deficits and weak revenue generation, highlighting what it described as persistent fiscal vulnerability.

According to the NESG, recent data reinforces concerns, as the Debt Burden Index remained elevated and volatile throughout 2025, fluctuating within a high-stress range and ending the year at an estimated 79.2 points.

“This pattern indicates that debt pressure has not structurally eased but instead fluctuates within a high-stress band,” the report stated.

The group added that the seeming improvement in conventional debt ratios masks deeper structural imbalances, noting that valuation effects, rather than genuine fiscal strengthening, were responsible for the changes.

It warned that Nigeria has not yet made a decisive shift toward debt sustainability, stressing that the economy remains in what it described as a “high-risk fiscal environment”

Source: https://punchng.com/fg-world-bank-in-talks-over-second-largest-1-25bn-loan

The previous loans they obtained how was it effectively utilized?
Now I believe the stories making rounds that the officials/staffs of these lending institutions receive cuts under the guise of consultation fees.

I am reserving my comments till the loan is approved

Let world bank just give them $500 billion dollars
If after 5 years they could not industrialize, take the country from 10th world country to a first world country and turn it to El Dorado , they should Nuke them

I wanted to say nuke it because of some foolish Nigerians while in thier most wretched state that still supports these greediest, heartless leaders. They are no different

I still can't understand why after the subsidy removal and all the promises of 'el dorado' and assurances that so much fund will be made available for governance,infrastructural development,massive industrialization etc,that all that is required of Nigerians is to make the sacrifice,bear the pain and accept subsidy removal but guess what? We have since witnessed an unprecedented and massive borrowing since then,something is not just adding up.
We need honest leaders!

AustineE1:
I still can't understand why after the subsidy removal and all the promises of 'el dorado' and assurances that so much fund will be made available for governance,infrastructural development,massive industrialization etc,that all that is required of Nigerians is to make the sacrifice,bear the pain and accept subsidy removal but guess what? We have since witnessed an unprecedented and massive borrowing since then,something is not just adding up.
We need honest leaders!

Where did the FG get the money that have been disbursed to states which is over 100% in done states compared to how much they have been receiving before? Let's put the projects , FX increase aside for now

Or are you the one secretly borrowing them money without telling us

Yesterday, it came out that the reason why APC governors have been split into separate camps is because FAAC deductions from states towards Tinubu's election, can't be given account for.
Yes, the borrowed money is being shared across all states and these states now send some of that money to an account dedicated to boosting the presidents election campaign. Tell me if a more evil party has existed.

Many Traders Shutting Down As Transportation Eats Deep Into Profits

THIS GOVT IS COMMITTING ECONOMIC ATTROCITY AND DIASTER

AustineE1:
[b]I still can't understand why after the subsidy removal and all the promises of 'el dorado' and assurances that so much fund will be made available for [/b]governance,infrastructural development,massive industrialization etc,that all that is required of Nigerians is to make the sacrifice,bear the pain and accept subsidy removal but guess what? We have since witnessed an unprecedented and massive borrowing since then,something is not just adding up.
We need honest leaders!

Tinubu has borrowed what Nigeria cannot pay back in 70yrs . The worst part is that there is nothing on ground to show for all this money he has borrowed .

We warned Nigerians in 2023 that this man only comes to destroy our country and walk away .

Let the man use Lagos as his collateral because he can't put us in endless debt.

Yes. New roads will stop ASUU and doctors strikes. It will reduce food, pharmaceuticals, stationery and shelter cost. It will stop bureaucratic bottleneck.

After 2027 . All the present leaders should be arrested and their I'll gotten wealth both home and abroad should be used to pay all these loans.

War chest to rig elections and Tinubu cronies to loot.

Tinubu is a weapon fashioned against Nigeria.

Task Master aka Mr Borrow Borrow has imposed himself on Nigerians. Even those who helped him to power are already regretting what they have done like Judas Iscariot. Using a cup to serve water to the monkey is not the problem. The problem is retrieving the cup when the monkey is done drinking.

No be half of this money wey Renewed hope dey use play

lol
$1.25 B?
Is that a loan?
I don't know why Nigeria is taking such tiny loans when we can take more and use it for the benefit of the masses.
South Africa with a very much smaller population is owing 5 times what Nigeria is owing.
We need more money to build infrastructures that will galvanize the growth of Nigeria and Nigerians.
If one compares Tinubu with his predecessors who didn't build infrastructures,do Nelfund,do free technical colleges,do free maternal services etc,couldn't stop ASUU strikes,owe workers up to 20 months and more etc,then the person is being dishonest.
Tinubu is head and shoulder above them in infrastructures,Education,Health etc.
The highest subsidy ever paid was by Buhari who paid #11 trillion in 8 years.
It is not like subsidy money is unlimited.
None of these previous govt, except OBJ,ever paid a single dime from Nigeria's debt like Tinubu.

ANOTHER LOAN !!!!!!!!!!!!!!!!!!!!

AustineE1:
I still can't understand why after the subsidy removal and all the promises of 'el dorado' and assurances that so much fund will be made available for governance,infrastructural development,massive industrialization etc,that all that is required of Nigerians is to make the sacrifice,bear the pain and accept subsidy removal but guess what? We have since witnessed an unprecedented and massive borrowing since then,something is not just adding up.
We need honest leaders!

The man is very dull and foolish

What simply happened is called "the more things changes, the more they remain the same"

When he removed subsidy, he never envisaged that that declaration will lead to a chain reaction of hyper inflation of prices of other goods and services across multiple sectors.

He can no longer afford to pay for the bandit A electricity units that he increased multiple folds, in the A.villa he now relies totally on solar power . He has left national electricity gridlock for his slaves

He still paying hidden subsidies as we speak. This total failure of policy. In some climes this man would have been booted out long ago. But luckily he is in a mumu country.

This man that i found it difficult to call President will finish this country with loan for selfish reason. He has converted the federal treasury to his personal and family use.

ANOTHER LOAN?
From Jan to May 2026 , Mr Tinubu has borrowed More than 5 Loans from different Countries.
After removing Subsidies from every Commodities which the Citizens ought to enjoy, yet no reflection in the Economy.

first day in office, "subsidy gone" his minions said hes the next best thing after sliced bread, the country ll turn to Paradise just watch, now almost 4 years the borrowing is on an exponential rate, if you ask them where the money for subsidy is, I bet you know what their answer ll be.....

Please our scholars here, what is economic reform? Also differentiate it from job creation. Thanks. (98 marks)

We can't wait for Wale Edun's book about his service to Tinubu regime to come out.

Now he's out of the evil regime...the bazaar is now on steroids, massive borrowing and looting

Tinubu when you're done with Nigeria just remember us the remaining change left as naira pls give it to us sir

Bola Ahmed Tinubu want go borrow money to use rigg election

God go punish them for this country

Borrow the country to oblivion!

But we were told by Tinubu government that Nigeria World Bank debt has been settled.

samomoli:
After 2027 .

All the present leaders should be arrested and their I'll gotten wealth both home and abroad should be used to pay all these loans.

Who will arrest them after 2027, when Amupitan's INEC and Wike's courts are working overtime to make sure there is no credible opposition candidate next year?

Tinubu and APC are looking beyond next year's election unto crowning him as life president dictator after securing a 3rd term that Obasanjo failed to get in 2007.

iwaeda:
Wike Boasts Of Helping APC Use Judiciary To Kill Osun LG Funds Case, Warns Party Leaders Against Ingratitude

Minister of the Federal Capital Territory (FCT), Nyesom Wike, has openly boasted that he assisted certain elements within the ruling All Progressives Congress (APC) in deploying the judiciary to frustrate the Osun State local government allocation lawsuit.

In a video now circulating widely on social media and obtained by SaharaReporters, Wike made the claim while addressing a crowd in Port Harcourt, Rivers State.

The former Rivers governor accused the APC National Secretary, Senator Ajibola Basiru, of benefitting from judicial actions against the Osun State Government without knowing those who did the work behind the scenes.

The suit in question led to the withholding of local government funds in Osun State, a development widely seen as targeting the administration of Governor Ademola Adeleke as opposition in the state.

Wike, who spoke angrily, suggested that the court action supporting the APC’s position against the Osun government did not happen by chance, boasting that powerful political forces worked quietly to ensure the outcome.

“Don’t take our support for Mr President for granted,” Wike warned, in an apparent message to APC leaders defending Rivers State Governor Siminalayi Fubara. “You have to be careful about the statements you make. You have to be very careful.”

He accused Basiru of political ingratitude, claiming the APC was enjoying in Osun State without understanding who engineered their advantage.

“Today, you are enjoying in Osun. You don’t know those who did the work,” Wike said. “You are opening your mouth to talk about Rivers State.”

https://saharareporters.com/2026/01/08/wike-boasts-helping-apc-use-judiciary-kill-osun-lg-funds-case-warns-party-leaders

Minister Wike has warned the National Secretary of the APC, Ajibola Basiru to stay clear of Rivers State.
Lol 😆 https://t.co/sNKjJfb8qn pic.twitter.com/E9SgSwASil

— Emma ik Umeh (Tcee )🇳🇬 (@emmaikumeh) January 5, 2026

Yarimo come n see what tinubu is doing

LOAN REPUBLIC OF NIGERIA... This is what Tinubu as turned us to.
Anytime IMF,World bank or China see our missed call..they already know what we are calling for.

We are allowing these oyinbos to enslave us forever. Before you can access IMF loans, you must dance to their tunes and implement very strict fiscal policies even to the detriment of your citizens. This is one of the major reasons why inflation keeps rising astronomically and people are finding it extremely difficult to survive. Black man, what's your problem?

TBH, we have the most useless Senate house, everything they give them to sign they do it, we'll i can't blame them when they will receive their own share from it