The World Bank has linked the release of a $500 million loan to Nigeria to the implementation of economic reforms, improvements in fiscal transparency and compliance with specified policy conditions.
The facility is part of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme, within a $1.25 billion financing package approved by the lender in June 2026.
The loan agreement was signed on October 6 by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on behalf of the Federal Government. The financing, provided through the International Bank for Reconstruction and Development, is intended to improve the business environment, strengthen public revenue and reduce trade barriers.
The $500 million facility will be disbursed in two tranches of $249.375 million each, while $1.25 million is allocated to the front-end fee.
Release of the first tranche depends on the World Bank’s assessment of programme implementation and the adequacy of Nigeria’s macroeconomic policy framework. The second requires evidence of satisfactory progress and completion of specified policy actions.
The agreement allows the lender to cancel some or all of the undisbursed funds if Nigeria fails to take corrective measures acceptable to the bank within 90 days of receiving notice that the conditions have not been met.
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The Federal Government must also maintain a dedicated foreign currency account for the loan proceeds and record the equivalent naira amount in its budget management system. The facility is scheduled to close on December 31, 2027.
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