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The World Bank has tied Nigeria’s access to a $500 million loan to economic reforms, fiscal transparency and independent audits, intensifying scrutiny of the federal government’s borrowing strategy.
The facility, under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme, forms part of a $1.25 billion package approved by the lender in June 2026.
The loan agreement, signed on behalf of Nigeria by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on October 6, provides for two withdrawal tranches of $249.375 million each, with $1.25 million allocated to the front-end fee.
The International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group, is providing the financing to support reforms intended to improve the business environment, strengthen public revenue and reduce trade barriers.
Under the agreement, the first tranche will only be released when the World Bank is satisfied with the implementation of the programme and the adequacy of Nigeria’s macroeconomic policy framework.
The second tranche requires evidence that the government has made satisfactory progress and completed specified policy actions.
The lender may cancel all or part of the undisbursed balance if Nigeria fails to take corrective measures acceptable to it within 90 days of receiving notice that the conditions have not been met.
The agreement also requires the Federal Government to maintain a dedicated foreign currency account for the proceeds and record the corresponding naira amount in its budget management system.
The loan’s closing date is December 31, 2027.
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