Tinubu’s Government In Talks With World Bank For Fresh $1.25bn Loan

The President Bola Tinubu government is currently discussing a fresh $1.25 billion loan with the World Bank, according to a document seen by Channels Television.

The document, titled “Nigeria Actions for Investment and Jobs Acceleration,” revealed that the proposed funding is expected to support ongoing economic reforms, improve competitiveness, and create more jobs across the country.

According to the report, negotiations have reached an advanced stage, with the loan proposal expected to be presented for approval on June 26, 2026.

It was gathered that the process has already moved past the early concept and appraisal stages.

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

The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance will oversee the implementation of the programme.

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 proposed loan is currently at the decision-meeting phase in the World Bank approval process.

At this stage, the bank’s management reviews the final project details to determine whether it should proceed to the Board of Executive Directors for final approval.

This phase comes after negotiations and appraisals have already been completed, with both parties reportedly agreeing in principle on financing terms, policy actions, and reform commitments.

In the World Bank system, the decision meeting is considered one of the final internal approval stages before the project is formally presented to the board.

The document stated that the review had authorised the team to continue with appraisal and negotiations, indicating that the project has successfully passed earlier internal assessments and is moving closer to approval.

According to the World Bank, the proposed loan is aimed at helping the Nigerian government improve access to finance, electricity, and digital services, 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.

The approved funds covered several sectors, including healthcare, education, agriculture, renewable energy, power supply, social protection, MSME financing, and broader economic reform programmes.

Some of the major approvals include the $2.25 billion RESET and ARMOR reform packages approved in June 2024, the $1.57 billion support for the HOPE and SPIN programmes approved in September 2024, and another $1.08 billion approved in March 2025 for education and resilience projects.

KanyiDaily recalls that President Bola Tinubu recently asked the Senate to approve a $516.3 million foreign loan to fund part of the Sokoto–Badagry highway project.