May 12, 2026 | SUNTV Global Channel
The administration of President is set to secure another massive loan from the , as the Federal Government advances plans for a fresh $1.25billion facility aimed at supporting economic reforms, investment, and job creation across Nigeria.
According to findings, the proposed loan, titled “Nigeria Actions for Investment and Jobs Acceleration,” has reached an advanced stage in the World Bank approval process and is expected to be presented before the institution’s board on June 26, 2026.
At the current exchange rate of N1,361.4 per dollar, the facility is estimated at approximately N1.70 trillion, making it one of the biggest loans to be pursued under the Tinubu administration.
If approved, the loan would become the second-largest World Bank facility secured by the current government, behind the $1.5billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing obtained in June 2024.
Documents from the World Bank’s Programme Information Document revealed that the proposed loan has moved beyond both the concept and appraisal stages, indicating intensified negotiations between Nigerian authorities and the global lender.
The development is coming at a time when concerns continue to mount over Nigeria’s rising debt burden and the Federal Government’s growing dependence on external borrowing to sustain fiscal reforms and stabilize the economy.
Reports indicate that Nigeria’s external debt could rise from N74.43 trillion ($51.86bn) as of December 31, 2025, to at least N76.13 trillion ($53.11bn) if the facility is approved and fully disbursed.
Similarly, the country’s total public debt profile may increase from N159.28 trillion to approximately N160.98 trillion, while total debt in dollar terms could rise from $110.97bn to $112.22bn.
The proposed facility is expected to support policies aimed at improving competitiveness, boosting private sector investment, and creating employment opportunities in key sectors of the Nigerian economy.
However, economic analysts and financial observers have continued to raise concerns over the sustainability of Nigeria’s borrowing strategy, especially as citizens grapple with rising inflation, increasing living costs, and the harsh effects of ongoing economic reforms, including fuel subsidy removal and currency devaluation.
Meanwhile, Nigeria’s Accountant-General of the Federation, , has warned that the Federal Government may reconsider future World Bank loan arrangements if delays in approval and disbursement continue to affect project execution.
Speaking during a meeting with a World Bank delegation led by Mrs Treed Lane in Abuja, Ogunjimi stressed that Nigeria expects faster processing of loan requests since the funds are repayable and not grants.
“If approvals take more than six months, the Nigerian Government may no longer honour such arrangements,” he warned.
The latest move is expected to reignite nationwide debate over Nigeria’s rising debt profile and the long-term impact of continuous borrowing on the country’s economy.
