The World Bank is preparing to approve two major loan facilities totalling $750 million for the Federal Republic of Nigeria, with the formal endorsement expected to take place on Tuesday, September 30, 2025. This financial support is part of ongoing efforts by the international lender to assist Africa’s largest economy in navigating pressing fiscal challenges, accelerating structural reforms, and driving inclusive growth.
According to sources familiar with the process, the funding will be divided into two separate tranches, both tailored to address critical areas within Nigeria’s economic framework. A significant portion of the facility is expected to be channelled towards budgetary support, governance reforms, and measures to stabilise the macroeconomic environment amid persistent inflation and naira volatility.
Another key focus of the loans is to enhance Nigeria’s human capital development, with emphasis on social safety nets, education, and health care systems. The World Bank has consistently advocated for deeper investments in these sectors, noting that Nigeria’s long-term growth prospects hinge not only on physical infrastructure but also on the strength of its human resources.
This latest financing decision comes at a pivotal time for Nigeria, as the federal government continues to push ahead with bold policy reforms under the administration’s economic recovery agenda. Measures such as fuel subsidy removal, foreign exchange unification, and efforts to boost non-oil revenue have attracted both domestic debate and international attention.
While the proposed loans are concessional in nature and expected to carry relatively low interest rates and favourable repayment terms, economic analysts have raised questions about Nigeria’s growing debt burden. However, officials at the Ministry of Finance argue that the country’s debt-to-GDP ratio remains within sustainable limits, and that such borrowing is necessary to support reforms and stimulate recovery.
If approved, the funds will be disbursed through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD), the two arms of the World Bank Group responsible for supporting low and middle-income countries.
As Nigeria looks to stabilise its economy and unlock growth potential in key sectors, the impending approval of the $750 million loan signals continued confidence in the country’s reform agenda—while also placing renewed pressure on policymakers to ensure transparent implementation and measurable impact for the Nigerian people.
