Nigeria TV Info 

FG, World Bank in Talks Over Second-Largest $1.25bn Loan

The Federal Government of Nigeria is in advanced discussions with the World Bank for a fresh $1.25bn development loan, which could become the second-largest financing package from the global lender under the current administration.

According to official and project-level details, the proposed facility is designed to support economic reforms, job creation, infrastructure development, and improved macroeconomic stability, as Nigeria continues to pursue external financing to cushion fiscal pressures and strengthen growth.

If approved, the loan would rank just below the $1.5bn Development Policy Financing package previously granted to Nigeria, making it one of the largest single World Bank exposures to the country in recent years.

Economic implications

The loan, when converted at current exchange rates, is estimated at about ₦1.7 trillion, adding to Nigeria’s rising external obligations. Analysts note that such inflows are increasingly being used to support reforms in areas like fiscal management, energy transition, social protection, and private-sector growth.

Nigeria’s debt exposure to the World Bank has continued to rise, reflecting broader reliance on multilateral financing as revenue pressures and reform costs persist.

Government position

Officials say the borrowing discussions are part of a wider strategy to:

• Stabilise the economy
• Expand job creation programmes
• Improve infrastructure funding
• Support ongoing structural reforms

The World Bank is expected to review the proposal as part of its standard approval process before any final disbursement decision is made.