• Nigeria is seeking a fresh $1.25 billion loan from the World Bank to target finance, electricity, digital access and economic reforms
• The World Bank said the initiative supports Nigeria’s shift toward inclusive growth and job creation
• If approved, the new deal would push total approvals under the administration to around $10.6 billion

Nigeria is seeking a fresh $1.25 billion loan from the World Bank under a new programme designed to expand access to finance, improve electricity supply, strengthen digital services and support key reforms across trade, taxation and agriculture.

The proposed facility, known as the Nigeria Actions for Investment and Jobs Acceleration programme, is structured as a Development Policy Financing operation.

The Federal Republic of Nigeria is listed as the borrower, while the Federal Ministry of Finance will serve as the implementing agency.

According to a Programme Information Document obtained by Nairametrics, the World Bank is expected to consider approval for the facility on June 26, 2026.

The document noted that the review phase has already cleared the project to proceed to appraisal and negotiations after receiving legal confirmation that prior actions had been met.

The World Bank explained that the programme is intended to support Nigeria’s transition from economic stabilisation toward broader and more inclusive growth.

“The proposed Development Policy Financing (DPF) supports reforms initiated by the Government aimed at pivoting from stabilization to inclusive growth and job creation,” the document stated.

It added that “the $1.25 billion standalone operation builds on recent progress in restoring stability and underpins the Government’s shift toward an inclusive growth model.”

The financial institution said the programme aligns with Nigeria’s ambition to achieve 7 percent economic growth through a private sector-led strategy supported by government reforms.

Under the first pillar of the programme, the government plans to improve access to finance, electricity and digital infrastructure.

Measures under this component include support for the Investment and Securities Act 2025, operational credit enhancement systems, implementation of the National Digital Economy and E-Governance Bill, a national electricity metering framework and increased private sector participation in interconnected mini-grid projects.

The second pillar focuses on strengthening competitiveness through reforms in trade, tax administration and agriculture.

Proposed actions include reducing trade barriers, improving seed distribution systems, implementing VAT e-invoicing and introducing a minimum effective corporate tax framework.

The World Bank noted that Nigeria has introduced several major reforms since 2023, including the removal of petrol subsidies, exchange rate unification, an end to central bank deficit financing and stronger revenue administration systems.

According to the Bank, these reforms have helped improve government revenues, stabilise reserves, reduce foreign exchange volatility and strengthen investor confidence.

Despite those gains, the institution warned that Nigeria still faces serious structural challenges.

The report observed that economic growth remains modest, while per capita income growth is still below 2 percent. It also revealed that about 63 percent of Nigerians, more than 139 million people, were living in poverty as of 2025.

Other constraints identified by the Bank include weak financial intermediation, poor competition, high trade barriers, low-productivity agriculture, infrastructure deficits in electricity and digital connectivity, as well as governance challenges.

The World Bank also classified the risks surrounding the proposed operation as high.

Among the concerns raised were political uncertainties ahead of the 2027 elections, oil price volatility, inflation risks linked to prolonged Middle East tensions, possible setbacks in revenue reforms, election-related spending pressures and weak coordination among government agencies.

Data reviewed by Nairametrics showed that Nigeria has secured approximately $9.35 billion in World Bank loan approvals under President Bola Tinubu between June 2023 and May 2026.

If the new loan is approved in June, total World Bank approvals under the current administration could rise to roughly $10.6 billion.

The proposed facility would also become the second-largest World Bank loan approved for Nigeria under President Tinubu, behind the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

Meanwhile, the Accountant-General of the Federation, Dr. Shamseldeen Babatunde Ogunjimi, recently warned that Nigeria could reconsider some World Bank loan arrangements if approval and disbursement timelines continue to face delays.

Ogunjimi emphasised that the funds requested from the World Bank were loans rather than grants, stressing that Nigeria deserved faster processing as a responsible borrower.

He also urged the institution to accelerate approval procedures and ensure the timely release of funds intended for national development projects.

World Bank approves $500m boost for Nigeria’s agriculture, targets 1m farmers

Meanwhile, TheRadar earlier reported that the World Bank had approved a $500 million credit facility for Nigeria to strengthen agricultural productivity and value chains, with a focus on smallholder farmers and food security.

The funding, provided through the International Development Association, aimed to support the Nigeria Sustainable Agricultural Value Chains for Growth Project, known as AGROW.

The loan, approved on March 30, 2026, was expected to tackle longstanding challenges in Nigeria’s agricultural sector, which, despite being the country’s largest employer, continues to face structural setbacks.