The Federal Government is currently in discussions with the World Bank over a proposed $1.25 billion loan package, which could become one of Nigeria’s largest recent financing arrangements.

The planned facility is expected to support key sectors of the economy as the government continues efforts to stabilise public finances, strengthen infrastructure and drive economic reforms.

Sources familiar with the discussions said the loan is part of broader engagements between Nigeria and international financial institutions aimed at addressing fiscal pressures and supporting long-term development goals.

If approved, the funding would rank among the country’s biggest loan agreements in recent years and could be directed toward projects tied to economic growth, social intervention and structural reforms.

The talks come at a time when the Nigerian government is facing mounting economic challenges, including inflation, foreign exchange pressures and rising debt concerns.

Analysts say the move highlights the government’s continued reliance on external financing to fund development programmes and bridge budgetary gaps.

While supporters argue that concessional loans from institutions like the World Bank can help accelerate development, critics have raised concerns over Nigeria’s growing debt profile and repayment obligations.

The Federal Government has, however, maintained that borrowed funds are being targeted at critical sectors capable of improving productivity, boosting investment and supporting economic recovery.