Nigerian Government Requests Extra $1 Billion World Bank Loan to Support Economic Reforms

The Federal Government is pursuing another major credit facility from the World Bank as part of efforts to support ongoing economic reforms and stimulate job creation.

The plan involves securing $1 billion to further stabilise the economy and encourage private-sector growth.

The loan request is tied to a new programme titled “Nigeria Actions for Investment and Jobs Acceleration (P512892)”, and the World Bank has set December 16 as the tentative date for approval.

According to official documents, the proposed facility will be split into two equal parts — a $500 million IDA credit and a $500 million IBRD loan.

The package is designed to strengthen macroeconomic reforms, boost access to finance, deepen digital and capital markets, and support private investments across key sectors.

A portion of the World Bank document reads: “The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation… expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification.”

The Tinubu administration maintains that recent policy decisions: including fuel subsidy removal, exchange-rate unification, and a halt to central bank deficit financing are already yielding results.

Government officials say these measures have improved investor sentiment and narrowed fiscal pressures.

However, hardship remains widespread. Inflation is still high, and more than 130 million Nigerians are living in poverty despite the reforms.

Analysts note that while macroeconomic indicators are improving, everyday living conditions are yet to reflect the change.

The loan, once approved, will be implemented through the Federal Ministry of Finance.

It forms part of the government’s wider financing plan to transition from economic stabilisation to sustained, broad-based growth.