The World Bank has tied access to a $500 million loan for Nigeria to satisfactory progress on agreed economic reforms, adequate macroeconomic policies and tighter financial reporting requirements, placing implementation and accountability at the centre of the facility.
Under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme, the International Bank for Reconstruction and Development (IBRD) will release the funds in two withdrawal tranches, with each disbursement subject to conditions set out in the loan agreement.
The agreement, signed on behalf of Nigeria by Taiwo Oyedele, minister of finance and coordinating minister of the economy, on October 6, 2026, requires the World Bank to assess the government’s reform progress and macroeconomic policy framework before authorising withdrawals.
According to the agreement, each withdrawal tranche amounts to $249.375 million, while $1.25 million is allocated to the loan’s front-end fee.
The first tranche cannot be withdrawn unless the World Bank is satisfied that Nigeria is implementing the programme and maintaining an adequate macroeconomic policy framework.
Access to the second tranche carries additional requirements. The lender must be satisfied with progress under the programme, the adequacy of the macroeconomic framework and evidence that specified policy actions have been completed.
The World Bank also reserves the right to cancel all or part of the undisbursed balance if Nigeria fails to take corrective measures acceptable to the institution within 90 days of receiving notice that the conditions have not been met.
The $500 million facility forms part of a $1.25 billion development policy financing package approved by the World Bank in June 2026 to support reforms aimed at strengthening the foundations for economic growth, improving competitiveness and encouraging private sector investment.
Beyond reform implementation, the loan agreement establishes detailed requirements for the management, reporting and auditing of proceeds, giving financial accountability a central role in the disbursement process.
Nigeria is required to maintain a dedicated foreign currency account for the loan proceeds and record the corresponding naira equivalent in its budget management system.
Within 30 days of withdrawing each tranche, the Federal Ministry of Finance must report to the World Bank the amount received, the account into which the naira equivalent was credited, evidence that the funds were recorded in the government’s budget management system, and a statement of receipts and disbursements from the dedicated account.
The dedicated account must also be audited by auditors of the Central Bank of Nigeria acceptable to the World Bank within one month of the withdrawal.
A certified copy of the audit report must be submitted within four months and made publicly available in a timely manner, according to the agreement.
The loan’s closing date is December 31, 2027.
The conditions come amid growing scrutiny of Nigeria’s debt-servicing burden and its capacity to finance public expenditure while sustaining economic reforms.
The World Bank recently reported that Nigeria’s interest payments rose to N7.7 trillion in the first half of 2026, from N5.6 trillion in the corresponding period of 2025.
According to the lender, interest payments amounted to 124.19 per cent of federal government revenue and increased to 3.1 per cent of gross domestic product from 2.5 per cent a year earlier.
Against this backdrop, the latest loan agreement places emphasis not only on policy reforms but also on the conditions under which external financing can be accessed and accounted for.
The World Bank approved the wider $1.25 billion financing package under its 2026–2032 Country Partnership Framework for Nigeria, with the programme designed to support reforms intended to improve the investment climate, boost competitiveness and create conditions for private sector-led growth.
The reforms include measures to strengthen the business environment, improve public revenue mobilisation and reduce trade barriers.
The arrangement also makes the pace of implementation and the quality of evidence submitted to the World Bank important factors in securing the second tranche.
While the financing provides additional external resources to support the reform programme, its terms require the government to showcase progress and maintain specified financial controls before and after withdrawals.
