Nigeria Seeks $1.25 Billion World Bank Loan Amid Debt Crisis and Opposition Backlash

The Federal Government of Nigeria is seeking a $1.25 billion loan from the World Bank to fund the 'Nigeria Actions for Investment and Jobs Acceleration' program, targeting reforms in finance, digital and electricity services, tax, trade, and agriculture. The facility has passed appraisal and negotiation phases and is expected to go before the World Bank's Board of Executive Directors on June 26, 2026. If approved, it would be the second-largest World Bank facility secured under President Bola Ahmed Tinubu, adding to approximately $9.35 billion in World Bank loans approved for Nigeria between June 2023 and May 2026.

The loan request comes as Nigeria's total public debt has reached a record ₦159 trillion, with external debt at approximately $53.11 billion. Accountant-General of the Federation Dr. Shamseldeen Ogunjimi warned the World Bank that Nigeria may reject future arrangements if approval and disbursement delays exceed six months, arguing such timelines undermine project execution for repayable loans.

Former Nigerian Bar Association President Olisa Agbakoba warned that public debt could climb to ₦200 trillion within four years if borrowing continues at the current pace without major fiscal reforms. Agbakoba attributed the crisis to weak revenue generation and systemic leakages in how state-owned enterprises remit funds to the Federation Account, while noting that Central Bank Governor Olayemi Cardoso had brought exchange rate stability.

The African Democratic Congress condemned the Tinubu administration for operating a 'Ponzi economy,' alleging new loans are used to service old debts and cover fiscal failures. ADC National Publicity Secretary Bolaji Abdullahi questioned why Nigerians are getting poorer despite trillions in borrowing. The party also criticized the National Assembly for acting as a 'rubber stamp' by approving massive borrowing requests without scrutiny. Projections indicate Nigeria may spend approximately $11.6 billion on debt servicing in 2026, diverting funds from healthcare, education, and infrastructure.