By Our Correspondent

National News – The Federal Government is in advanced talks with the World Bank over a proposed $1.25bn loan aimed at supporting economic reforms, job creation, electricity access, agriculture, and digital expansion in Nigeria.

The proposed facility, known as Nigeria Actions for Investment and Jobs Acceleration, is expected to be presented for approval on June 26, 2026, months before the 2027 presidential election.

The Federal Ministry of Finance will coordinate the programme, while agencies such as the Central Bank of Nigeria and the Nigerian Electricity Regulatory Commission will support implementation.

The proposed loan would become the second-largest World Bank facility secured under President Bola Tinubu if approved.

Reports show the fresh borrowing could increase Nigeria’s external debt from $51.86bn to over $53bn, while total public debt may exceed $112bn.

According to the World Bank, the loan will help improve access to finance, strengthen private sector competitiveness, reduce food production costs, expand electricity supply, and improve tax revenue generation.

The lender also noted that political and governance risks ahead of the 2027 elections could affect the implementation of sensitive reforms.

The Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria may reconsider future World Bank loans if approval and disbursement delays continue.

He stressed that loan processing should match project timelines because the facilities are repayable and not grants.

Economists have expressed mixed reactions to the planned borrowing.

Some analysts believe concessionary loans can support growth if properly utilised, while others warned that rising foreign debt and exchange rate pressures may worsen Nigeria’s fiscal challenges.

The Nigerian Economic Summit Group also described Nigeria’s debt outlook as fragile despite slight improvements in debt indicators.