The Federal Government is engaging the World Bank for a fresh $1.25bn loan under a proposed programme aimed at expanding access to finance, digital services, electricity, and supporting reforms in tax, trade, and agriculture.
The facility, titled Nigeria Actions for Investment and Jobs Acceleration, is listed as a Development Policy Financing operation, with the Federal Republic of Nigeria as borrower and the Federal Ministry of Finance serving as the implementing agency.
According to a World Bank Programme Information Document, the proposed approval date for the facility is June 26, 2026, while the project has already advanced to the appraisal and negotiation stage following legal clearance for prior actions.
The World Bank said the programme is designed to support the government’s efforts to improve access to finance, digital and electricity services, while strengthening competitiveness through reforms in taxation, trade, and agriculture.
The financing is structured as a standalone Development Policy Financing operation and is expected to support Nigeria’s transition from macroeconomic stabilisation to inclusive economic growth and job creation.
According to the Bank, the operation builds on recent reforms implemented by the administration of President Bola Tinubu and supports the government’s broader goal of achieving seven per cent economic growth through a private sector-led development strategy.
The first pillar of the programme will focus on expanding access to finance, digital services, and electricity. This includes support for the Investment and Securities Act 2025, operationalisation of credit enhancement facilities, implementation of the National Digital Economy and E-Governance Bill, a national metering framework, and private sector participation in interconnected mini-grid projects.
The second pillar will target competitiveness through trade, tax, and agricultural reforms, including efforts to reduce trade barriers, improve seed supply systems, introduce VAT e-invoicing, and implement a minimum effective corporate tax rate.
The World Bank noted that Nigeria had undertaken significant reforms since 2023, including the removal of petrol subsidy, unification of the foreign exchange market, ending central bank deficit financing, and strengthening revenue administration.
According to the institution, these reforms have helped improve fiscal stability, increase government revenues, narrow the budget deficit, strengthen external reserves, reduce exchange rate volatility, and improve investor confidence.
However, the Bank warned that Nigeria has yet to transition fully into a higher and more inclusive growth trajectory, noting that economic growth remains modest and per capita income growth is below two per cent.
It added that about 63 per cent of Nigerians, representing more than 139 million people, remained in poverty in 2025.
The document also identified several structural challenges slowing growth, including weak financial intermediation, poor infrastructure, high trade barriers, low agricultural productivity, and governance concerns.
Despite the expected benefits of the proposed operation, the World Bank classified the overall risk profile as high due to political and governance uncertainties ahead of the 2027 general elections, oil price volatility, inflationary pressures linked to Middle East tensions, and possible setbacks in revenue reforms.
Other risks highlighted include election-related spending pressures, weak coordination among government agencies, fiduciary concerns, and social risks associated with trade reforms.
If approved, the proposed facility would increase total World Bank loan approvals under the Tinubu administration to approximately $10.6bn between June 2023 and May 2026.
The loan would also become the second-largest World Bank facility approved for Nigeria under the current administration, behind the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Meanwhile, the Accountant-General of the Federation, Shamseldeen Babatunde Ogunjimi, recently warned that Nigeria could reconsider future World Bank loan arrangements if approval and disbursement processes continue to experience delays.
Ogunjimi stressed that the facilities being sought were loans rather than grants and urged the World Bank to accelerate approvals and ensure timely release of development funds.
