World Bank to Approve $750m Loan for Nigeria on Tuesday

Nigeria is set to secure a significant financial boost as the World Bank prepares to approve a $750 million loan on Tuesday, marking one of the largest recent interventions by the global lender in support of the country’s economic reforms. The facility, expected to be approved by the World Bank’s Board of Directors, is designed to strengthen Nigeria’s fiscal management, enhance social protection systems, and support key reforms targeted at stabilizing the economy.

The anticipated approval comes at a time when Nigeria is grappling with mounting economic pressures, including high inflation, a volatile exchange rate, revenue shortfalls, and rising debt obligations. The Federal Government has emphasized that the World Bank loan will not only help bridge budgetary gaps but also provide resources for structural reforms intended to position the economy on a sustainable growth path.

According to government sources, the loan will be channeled into programs that directly address fiscal sustainability and revenue mobilization, particularly in non-oil sectors. It will also support efforts to expand social safety nets, enabling millions of vulnerable Nigerians to benefit from conditional cash transfers and other welfare programs. The initiative forms part of a broader strategy to cushion the impact of recent subsidy removals and exchange rate unification policies.

Finance and economic experts have highlighted that the $750 million loan signals strong international support for Nigeria’s reform agenda. Since the removal of petrol subsidies in 2023 and the subsequent liberalization of the foreign exchange market, the government has been under pressure to implement policies that can deliver long-term benefits without worsening the immediate hardship faced by households. The World Bank’s endorsement through financial support is therefore being seen as both a vote of confidence and an avenue to provide much-needed fiscal relief.

Vice President Kashim Shettima, who recently represented Nigeria at the United Nations General Assembly in New York, emphasized the government’s commitment to driving inclusive growth and implementing reforms that will restore investor confidence. He reiterated that Nigeria’s priority is to balance fiscal prudence with targeted investments in infrastructure, social services, and job creation. The incoming World Bank loan, he noted, will be pivotal in achieving those objectives.

The loan is expected to focus on two main pillars: enhancing domestic revenue mobilization and improving the efficiency of government spending. Nigeria has long struggled with low revenue-to-GDP ratios, one of the weakest in Africa, due largely to heavy dependence on oil earnings. By supporting initiatives to expand the tax base, improve compliance, and strengthen digital revenue collection, the World Bank loan aims to boost government income while reducing reliance on borrowing.

On the expenditure side, reforms will target waste reduction, transparent budgeting, and improved public sector accountability. Government officials have indicated that part of the funds will also be directed towards critical sectors such as education, healthcare, and agriculture, which are essential for inclusive development and poverty reduction.

Stakeholders in the financial sector have reacted positively to the news, noting that the anticipated approval will ease pressure on Nigeria’s reserves and exchange rate. Analysts argue that beyond the short-term fiscal injection, the loan could help Nigeria attract additional funding from other development partners, multilateral institutions, and foreign investors.

However, concerns remain about Nigeria’s rising debt stock, which has crossed ₦97 trillion as of mid-2025, according to the Debt Management Office. Critics argue that while concessional loans from institutions like the World Bank come with favorable interest rates, the country must focus on improving revenue generation and managing existing debt obligations effectively to avoid unsustainable debt accumulation.

The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have both urged the government to ensure that funds from the loan are deployed efficiently. They stressed the importance of channeling resources into projects and reforms that will directly improve the business environment, lower production costs, and create jobs for millions of unemployed Nigerians.

Civil society groups have also called for transparency and accountability in the management of the loan proceeds. They insist that lessons must be learned from past financial interventions, where funds were sometimes mismanaged or failed to deliver tangible results for citizens. They are demanding strong monitoring mechanisms to ensure that the $750 million loan achieves its intended objectives.

The World Bank loan aligns with Nigeria’s broader economic reform agenda under President Bola Tinubu’s administration, which has prioritized fiscal consolidation, industrialization, and social protection. It also dovetails with Nigeria’s Medium-Term Expenditure Framework, which emphasizes improving revenue, cutting non-essential spending, and boosting investment in priority sectors.

In the coming months, Nigeria is also expected to explore additional financing options with other international partners, including the African Development Bank (AfDB) and the International Monetary Fund (IMF). These efforts are seen as part of a coordinated strategy to stabilize the economy, restore macroeconomic balance, and unlock new opportunities for growth.

As Tuesday approaches, expectations are high that the World Bank Board will approve the facility, providing Nigeria with a critical lifeline at a challenging economic moment. If properly managed, the loan could help address immediate fiscal needs while laying the foundation for sustainable reforms that strengthen institutions, expand social safety nets, and stimulate growth.

Ultimately, the success of this intervention will depend on how effectively Nigeria translates financial support into structural reforms that drive inclusive prosperity. With inflation easing gradually, oil production stabilizing, and investor confidence beginning to improve, stakeholders believe that the World Bank loan could mark a turning point in Nigeria’s quest to restore economic stability and achieve long-term development.