The administration of President Bola Ahmed Tinubu is advancing plans to secure a fresh $1.25 billion loan from the World Bank as part of ongoing efforts to support economic reforms, investment growth and job creation initiatives in Nigeria.
Findings indicate that the proposed facility, titled Nigeria Actions for Investment and Jobs Acceleration, has reached an advanced stage in the World Bank approval process and is expected to be presented before the institution’s board on June 26, 2026.
At the current exchange rate of N1,361.4 to one dollar, the proposed facility is estimated at approximately N1.70 trillion, underscoring the scale of financing being pursued by the Federal Government amid ongoing fiscal and monetary reforms.
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The planned borrowing is expected to become the second-largest World Bank loan secured under the Tinubu administration if approved.
It would rank behind the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing facility obtained by the administration in June 2024.
The latest move comes amid growing concerns over Nigeria’s rising debt profile and increasing dependence on external financing to stabilise the economy and implement key development programmes.
Economic analysts say the proposed loan is aimed at supporting investment expansion, boosting productivity and accelerating job creation as the government continues to pursue reforms targeted at improving economic performance.
However, concerns have also been raised over the sustainability of Nigeria’s debt burden, with critics warning that continued borrowing could place additional pressure on the country’s public finances if not effectively managed.
The Federal Government has consistently maintained that ongoing reforms and strategic financing are necessary to reposition the economy and attract long-term investment into critical sectors.
(Punch)