At the current exchange rate of N1,361.4 to the dollar, the proposed facility is valued at about N1.70tn, highlighting the scale of financing being pursued by the Federal Government as it implements key fiscal and monetary reforms.
The administration of President Bola Tinubu is preparing to secure another major loan from the World Bank, with the Nigerian government advancing plans for a fresh $1.25bn facility that could become the second-largest World Bank loan obtained under the current administration.
Findings showed that the proposed facility, titled Nigeria Actions for Investment and Jobs Acceleration, has reached an advanced stage in the World Bank’s approval process and is expected to be presented to the institution’s board on June 26, 2026.
The planned borrowing comes amid growing concerns over Nigeria’s rising debt profile and continued dependence on external financing to sustain economic reforms, stabilise the economy, and drive investment and job creation initiatives.
If approved, the $1.25bn loan would rank behind only the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing secured by the Tinubu administration in June 2024, PUNCH reports.
At the current exchange rate of N1,361.4 to the dollar, the proposed facility is valued at about N1.70tn, highlighting the scale of financing being pursued by the Federal Government as it implements key fiscal and monetary reforms.
Documents contained in a World Bank Programme Information Document obtained on Monday showed that the loan has moved beyond the concept and appraisal phases, signalling that discussions between Nigerian authorities and the lender have intensified ahead of final consideration.
The timing of the proposed approval is also significant, as it is expected to come about six months and 21 days beforeNigeria’s next presidential election scheduled for January 16, 2027, according to the revised timetable released by the Independent National Electoral Commission.
If eventually approved and fully disbursed, Nigeria’s external debt stock is projected to rise from N74.43tn, equivalent to $51.86bn as of December 31, 2025, to at least N76.13tn or about $53.11bn.
The country’s total public debt profile could also increase from N159.28tn to approximately N160.98tn. In dollar terms, Nigeria’s total public debt may climb from $110.97bn to about $112.22bn.
The proposed facility is expected to support reforms targeted at improvingcompetitiveness, encouraging private sector investment, and creating jobs across critical sectors of the economy.
Overttime there have been concerns that the planned borrowing further reflects the Federal Government’s increasing reliance on multilateral loans to fund economic programmes at a time when Nigerians continue to grapple with inflation, rising living costs, and the effects of ongoing economic reforms. With the country’s debt obligations already mounting, the fresh loan is likely to renew debates over the sustainability of Nigeria’s borrowing strategy and the long-term impact on public finances.
Cc: SaharaReporters