The Nigerian government has entered final negotiations with the World Bank for a $1.25 billion loan. This facility is designed to stimulate job creation and investment through the “Nigeria Actions for Investment and Jobs Acceleration” program.
Expected for board presentation on June 26, 2026, the credit represents the second-largest standalone package under the current administration. It follows the $1.5 billion stabilization financing secured in June 2024 to support fiscal reforms.
The Federal Ministry of Finance will coordinate the loan’s implementation. Key beneficiaries include the Central Bank of Nigeria and the Ministry of Power, focusing on lowering agricultural costs and expanding national digital infrastructure.
This move follows a recent ultimatum from the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi. He warned that Nigeria may cancel loan agreements if the World Bank delays disbursements beyond a six-month window.
The fresh borrowing could push Nigeria’s total external debt toward $53 billion. Despite this, the national debt-to-GDP ratio is projected to remain relatively stable, hovering around 34.5% for the 2026 fiscal year.
World Bank documentation classifies the operation as “high risk.” Analysts suggest that potential political pressures leading into the 2027 election cycle could impact the long-term sustainability of the economic reforms linked to this funding.
If approved, this facility will bring total World Bank commitments to Nigeria since mid-2023 to approximately $10.6 billion. This reinforces the institution’s position as the nation’s primary multilateral financier for infrastructure projects.
