The World Bank has tied access to Nigeria’s $500 million development loan to the Federal Government’s progress in implementing agreed economic reforms and maintaining an adequate macroeconomic policy framework. The facility forms part of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme, which aims to strengthen the business environment, improve public revenue and reduce trade barriers.
According to loan documents reviewed by Nairametrics, the agreement was signed on October 6, 2026, by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on behalf of Nigeria. The funding will be provided by the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group. The $500 million facility is part of a broader $1.25 billion financing package approved by the World Bank in June 2026.
The loan will be released in two withdrawal tranches of $249.375 million each, while $1.25 million is allocated to the front-end fee. Before releasing the first tranche, the World Bank must be satisfied that Nigeria is implementing the programme and maintaining an adequate macroeconomic policy framework. The second tranche carries additional conditions, including evidence that the government has made satisfactory progress on the programme and completed specified policy actions.
The agreement also imposes financial reporting and auditing requirements on the Federal Government. Nigeria must maintain a dedicated foreign currency account for the loan proceeds and record the equivalent amount in its budget management system. Within 30 days of withdrawing each tranche, the Ministry of Finance must report the amount received, the account into which the naira equivalent was credited and evidence that the funds were properly recorded. The account must also be audited by auditors of the Central Bank of Nigeria acceptable to the World Bank, with a certified report submitted within four months and made publicly available.
The lender warned that it could cancel all or part of the undisbursed balance if Nigeria failed to take corrective steps satisfactory to the bank within 90 days of receiving notice that the conditions had not been met. The agreement sets December 31, 2027, as the closing date. The wider $1.25 billion financing package is intended to support reforms aimed at improving economic competitiveness, attracting private investment and creating jobs, although the latest agreement makes access to the $500 million facility dependent on implementation, macroeconomic conditions and compliance with accountability requirements.
