Nigeria’s Public Debt Nears $112.22bn As FG Engages World Bank On Fresh $1.25bn loan
Oladipupo Olamiposi@olamiposioladipupo247606
5 days ago
The Federal Government has stepped up engagement with the World Bank for a fresh 1.25-billion-dollar loan to support economic reforms, job creation, and competitiveness, as findings showed that the facility has reached a critical stage in the lender’s approval process.
Findings also showed that the proposed loan equivalent to 1.70 trillion naira is expected to be presented for approval on June 26, 2026, about six months and 21 days before the January 16, 2027, presidential election.
These details were contained in a World Bank Programme Information Document obtained by journalists, which showed that the loan has progressed beyond the initial concept and appraisal phases and now at the decision meeting stage of the World Bank’s project cycle.
This stage typically comes after appraisal and negotiations have been substantially concluded, meaning that key policy actions, financing terms, and reform commitments have already been agreed in principle between the borrower and the World Bank team.
In the World Bank process, the decision meeting represents a near-final internal clearance, after which the project is prepared for formal Board consideration, where final approval is granted.
According to the Bank, the loan is designed to support the government’s efforts to expand access to finance, digital, and electricity services, and strengthen competitiveness through tax, trade, and agriculture reforms.
Supporting this position, the World Bank document stated, “The review did authorise the team to appraise and negotiate,” indicating that the project has successfully passed earlier internal checks and is advancing toward final approval.
If approved, the loan will rank as the second-largest single World Bank facility secured under President Bola Tinubu, behind only the 1.5-billion-naira loan approved in June 2024, thereby raising Nigeria’s external debt from 74.43 trillion naira as of December 31, 2025, to at least 76.13 trillion naira.
Also, if eventually approved and fully disbursed, Nigeria’s total public debt would rise from 159.28 trillion naira to at least 160.98 trillion naira.
