Federal Government Secures Fresh  $1.25 Billion World Bank Loan

By Suleiman Anyalewechi

Despite mounting criticisms and fears over the astronomical rise in its debt profile, the apex global financial  institution, the World Bank on Wednesday, July 1, 2026 announced the  approval of  a new loan package of $1.25 billion for Nigeria.

The approval coincided with the launch of the bank’s new Country Partnership Framework CPF , which is expected to drive its development support to Nigeria beginning from 2026 to 2032.

The Source reports that  President Bola Tinubu’s administration has, of late, come under intense scrutiny, and criticisms over its seemingly unbridled appetite for loans, a development which not a few contend  may have long-term negative consequences on the country.

Recent figures from the Debt Management Office DMO estimates Nigeria’s indebtedness to the global financial institution to be  hovering around $ 19.89 billion as at the end of the 2025 fiscal year.

Cumulatively, the total debt profile of the country within the same period stood at about $ 51.86 billion.

Many have questioned the high level borrowing culture, even with the removal of the petroleum subsidy regime, a policy which has unarguably shore up internally generated revenue among all the tiers of Government.

According to a statement released on Wednesday, the World said the new loan package will drive economic reforms targeted at modernising Nigeria’s digital economic sector , improving electricity sector governance , reducing trade barriers in line with regional agreements, as well as strengthening the country’s domestic capital markets.

The World Bank emphasized that the new partnership framework will consolidate on macroeconomic reforms already implemented by the Nigerian Government, which it believes have strengthened economic stability ,increased foreign reserves, and improved investor confidence.

The Bank expressed the confidence that through the new partnership framework, over 32 million Nigerians will gain access to electricity, with about 58 million people having broadband connectivity.

According to the bank, the partnership will guarantee access to improved healthcare services for approximately 40 million people, as well as support no fewer than 9.5 million farmers in boosting agricultural productivity, and food security.