Nigeria seeks new $1B loan, critics fear debt trap
Nigeria is pursuing $1 billion in financing from the World Bank to stimulate private enterprise and expand employment opportunities through economic reforms. The proposed Nigeria Actions for Investment and Jobs Acceleration program combines $500 million from the International Development Association with an equal amount from the International Bank for Reconstruction and Development. Board members will review the package on Monday, December 16, 2025, making it the second-largest facility secured during President Bola Tinubu’s tenure after the $1.5 billion RESET program that gained approval in June 2024.
The development policy financing targets Nigeria’s transition from emergency economic stabilization toward growth driven by commercial activity. Planned measures address credit accessibility, digital payment systems and agricultural supply chains while reducing price pressures. Private lending currently reaches just 21.3 percent of gross domestic product compared with higher rates among similar developing nations. Reforms will implement the Investment and Securities Act 2025 alongside enhanced credit facilities and consumer safeguards through central bank regulations.
The facility complements three existing World Bank initiatives focused on finance, digital systems and farming. External obligations totaled $46.98 billion through June 2025, with the lending institution holding roughly 41 percent of that burden at approximately $19.39 billion.
