LunagisthubWorld Bank Approves $1 Billion Loan to Boost Nigeria’s Economy
The World Bank has confirmed a fresh $1 billion loan request from the Nigerian government, led by President Bola Tinubu. This loan aims to consolidate ongoing economic reforms and support a shift from economic stabilization to inclusive growth. The funding will be implemented through the Federal Ministry of Finance and is designed to strengthen economic reforms, promote job creation, and accelerate private investment Support ongoing macroeconomic reforms and promote stability.
Accelerate private investment and create employment opportunities.
Support a decisive shift from economic stabilization to inclusive growth.
Since 2023, the Tinubu administration has implemented several economic reforms, including removing petrol subsidies, unifying exchange rates, and ending central bank deficit financing. These measures have helped stabilize the economy, narrow the fiscal deficit, and restore investor confidence. However, growth remains sluggish, with over 130 million Nigerians still living in poverty .
The $1 billion loan comprises a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan. The loan is part of the World Bank’s broader support package to consolidate post-reform stability and drive inclusive growth across key sectors of the economy .
This new loan is expected to catalyze private sector-led investment, deepen capital markets and digital services, ease inflationary pressures, and promote export diversification. With a tentative approval date set for December 16, 2025, the loan is expected to play a crucial role in Nigeria’s economic development.
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