By Wellington Jopelo
The Federal Government is moving toward securing another major loan from the World Bank as talks over a fresh $1.25 billion facility enter an advanced stage.
The proposed funding, expected to support economic reforms, job creation, electricity access, agriculture, and digital development, could become one of the biggest World Bank loans secured under President Bola Tinubu’s administration.
Findings showed that the loan has already passed key internal review stages within the World Bank system and is now approaching final approval discussions.
If approved, the facility would reportedly rank as the second-largest single World Bank loan obtained by Nigeria under Tinubu, behind the earlier $1.5 billion economic stabilisation package approved in 2024.
The planned loan is expected to focus on improving access to finance, expanding electricity services, boosting agriculture, strengthening trade reforms, and supporting private sector competitiveness.
However, the development is already drawing mixed reactions as concerns continue to grow over Nigeria’s rising debt profile and dependence on external borrowing.
Economic analysts warn that although concessional loans from institutions like the World Bank usually come with lower interest rates, increasing debt obligations could place more pressure on the country’s finances in the future.
Data reviewed by financial observers show that Nigeria’s debt exposure to the World Bank has increased steadily over the past few years as the government continues to rely on multilateral support for reforms and infrastructure financing.
The Federal Ministry of Finance is expected to coordinate implementation of the programme alongside agencies linked to power, agriculture, finance, and economic regulation if the loan is eventually approved.
Meanwhile, the Accountant-General of the Federation, Shamseldeen Ogunjimi, recently warned that Nigeria may reject future World Bank facilities if approval and disbursement delays continue for too long.
He stressed that since the funds are loans and not grants, Nigeria expects quicker processing and timely release of approved facilities.
As negotiations continue, many Nigerians are now watching closely to see whether the fresh borrowing will truly improve economic conditions or further deepen concerns over the country’s growing debt burden.