Nigeria Seeks $1.25 Billion Loan from World Bank for Reforms

The Federal Government of Nigeria is seeking a $1.25 billion loan from the World Bank, aimed at expanding access to financial digital services and supporting reforms in tax, trade, and agriculture. This proposal, which is scheduled for approval on June 26, 2026, is part of a broader initiative to enhance Nigeria's economic stability and growth.

The loan is expected to support the government's efforts to shift towards macroeconomic stability, inclusive growth, and job creation. The World Bank's program will focus on two main pillars: enhancing access to financial digital services and reforming tax and trade systems.

The proposal follows a previous approval of $9.35 billion in loans to Nigeria under President Bola Tinubu's administration, bringing the total to $10.6 billion. However, the World Bank has assessed the overall risk of the new operation as high, citing political and macroeconomic risks ahead of the 2027 elections, as well as potential setbacks related to revenue reforms and social risks around trade reform.