KEY POINTS

• Nigeria’s $1.25 billion World Bank loan, titled Nigeria Actions for Investment and Jobs Acceleration, is set for a June 26, 2026 approval vote.
• If approved, it would be Tinubu’s second-largest single World Bank facility after the $1.5 billion RESET financing of June 2024.
• Total World Bank approvals under Tinubu would rise to about $10.6 billion, while Nigeria’s debt stock would climb past N160 trillion.

Nigeria’s request for a $1.25 billion World Bank loan to fund investment and jobs reforms has reached the lender’s decision-meeting stage and is on track for a June 26 approval vote, just six months before the 2027 presidential election.

The facility, titled Nigeria Actions for Investment and Jobs Acceleration, would rank as the second-largest single World Bank financing secured under President Bola Tinubu, behind only the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation operation approved in June 2024.

Now the loan sits at the World Bank’s near-final internal clearance stage, after which the project moves to the Board of Executive Directors for formal approval. World Bank documents Punch reviewed confirmed that “the review did authorise the team to appraise and negotiate.”

The math of borrowing

Specifically, the $1.25 billion facility translates to about N1.70 trillion at the prevailing N1,361.4 exchange rate. If fully disbursed, it would raise Nigeria’s external debt from N74.43 trillion ($51.86 billion) at end-2025 to about N76.13 trillion, and lift total public debt from N159.28 trillion to about N160.98 trillion.

Indeed, total World Bank approvals under Tinubu would climb to roughly $10.6 billion, from $9.35 billion already approved between June 2023 and May 2026.

Moreover, the World Bank said the loan supports the government’s efforts to expand access to finance, digital services and electricity, while strengthening competitiveness through tax, trade and agriculture reforms.

The facility forms part of a broader package alongside FINCLUDE, BRIDGE, AGROW, ARMOR and DARES programs. The Federal Ministry of Finance will implement, working with the Central Bank, Securities and Exchange Commission, National Agricultural Seed Council, Nigerian Electricity Regulatory Commission and the Ministry of Power.

Furthermore, the bank flagged the operation’s risk profile as high, citing political and governance pressures ahead of the 2027 elections that could delay or reverse sensitive reforms.

Accountant-General fires shot

Additionally, Accountant-General of the Federation Shamseldeen Ogunjimi recently warned that Nigeria may walk away from World Bank facilities if approvals continue to drag. Ogunjimi told a World Bank delegation led by Treed Lane in Abuja that prolonged timelines undermine project execution.

“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” Ogunjimi said, stressing that the facilities carry repayment obligations and must align with fiscal planning frameworks.

However, World Bank Senior External Affairs Officer Mansir Nasir told Punch earlier that funds typically arrive in installments, with disbursements depending on specific policy and reform conditions.

Debt stock climbs

Today, Nigeria’s debt to the World Bank stands at $19.89 billion, up $2.08 billion or 11.7 percent year-on-year. IDA exposure climbed from $16.56 billion in 2024 to $18.51 billion in 2025, while IBRD borrowing rose from $1.24 billion to $1.38 billion.

Meanwhile, World Bank loans now account for 38.36 percent of Nigeria’s $51.86 billion external debt stock, sharpening the lender’s role as the country’s largest multilateral creditor.

Lagos-based economist Adewale Abimbola said the question is not whether Nigeria should borrow but whether the funds work. CSA Advisory’s Aliyu Ilias questioned why the government is taking on more debt while claiming higher subsidy-removal revenues.

CPPE chief executive Muda Yusuf added that debt sustainability hinges on cash flow and warned that excessive foreign borrowing pressures reserves and the naira.

Together, NESG’s latest Debt Burden Monitor reinforced the caution, noting that the Debt Burden Index closed 2025 at 79.2 points, still within a high-stress band. Yet for now, Tinubu’s team appears determined to lock in the $1.25 billion before the election clock tightens further.