FG in fresh $1.25bn World Bank loan talks

*Nigeria’s debt profile rises above $110bn
*Approval expected June 26 despite fresh concerns

The Federal Government is in advanced negotiations with the World Bank for a fresh $1.25 billion loan, aimed at bolstering ongoing economic reforms and job creation.

This potential facility, titled the ‘Nigeria Actions for Investment and Jobs Acceleration,’ is slated for a final approval meeting on June 26, 2026, according to document obtained by Channels TV.

If greenlit, the loan will focus on four critical pillars: Infrastructure, such as expanding access to digital services and electricity; strengthening trade, agriculture, and tax competitiveness; improving access to credit for small businesses and implementing the government’s economic stabilization agenda.

The timing of these negotiations is notable. Just last week, the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, issued a stern warning regarding the World Bank’s bureaucratic speed.

He asserted that Nigeria may reject loan facilities if approval and disbursement cycles exceed six months.

“If approvals take more than six months, the Nigerian Government may no longer honor such arrangements,” Ogunjimi stated, reminding the lender that these funds are interest-bearing loans, not grants.

This $1.25 billion request follows a significant period of borrowing. Between June 2023 and May 2026, the World Bank approved approximately $9.35 billion for Nigeria across various sectors.

As of late 2025, Nigeria’s external debt stood at $51.86 billion, contributing to a total public debt profile of $110.97 billion.

Currently, the project is at the “decision-meeting” stage-the final internal hurdle before the World Bank’s Board of Executive Directors makes its final determination.