Nigeria Moves Closer To Securing Fresh $1.25bn World Bank Loan Ahead Of 2027 Election
The Federal Government is intensifying discussions with the World Bank over a proposed $1.25bn loan aimed at supporting economic reforms, investment growth and job creation across Nigeria.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration programme, has reportedly advanced to a crucial approval stage within the global lender’s project cycle, signalling progress toward possible final endorsement later this year.
If approved, the loan would become one of the largest single facilities secured by President Bola Ahmed Tinubu’s administration, coming behind the $1.5bn economic stabilisation support package approved in 2024.
The proposed funding, valued at about N1.70tn using the current exchange rate, is expected to strengthen access to finance, improve electricity and digital infrastructure, and support reforms in agriculture, trade and taxation.
Findings also showed that the loan may be presented before the World Bank’s Board of Executive Directors for approval in June 2026, months before Nigeria’s 2027 presidential election season intensifies.
However, the fresh borrowing plan has triggered renewed debate over Nigeria’s growing dependence on external financing amid rising debt concerns.
Data indicates that the World Bank has approved more than $9bn in loans and credits for Nigeria since Tinubu assumed office in 2023, covering sectors such as healthcare, education, energy, agriculture and economic reforms.
Should the new facility receive final approval and be fully disbursed, Nigeria’s external debt stock could rise above $53bn, while total public debt may exceed $112bn.
Despite concerns, the World Bank maintained that the programme is designed to support inclusive growth by boosting agricultural productivity, expanding digital access, strengthening financial systems and improving revenue generation.
The Federal Ministry of Finance is expected to coordinate implementation alongside agencies including the Central Bank of Nigeria, the Nigerian Electricity Regulatory Commission and the Securities and Exchange Commission.
Meanwhile, economists have continued to express mixed reactions over the country’s rising debt profile.
While some argue that concessionary loans can help stimulate long-term growth if properly utilised, others warn that increasing foreign debt could deepen fiscal pressures and expose the economy to exchange rate risks ahead of the 2027 elections.
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