Atiku Kicks Against Tinubu’s Proposed $500m World Bank Loan

By Adedapo Adesanya

Former Vice President and African Democratic Congress (ADC) presidential candidate, Mr Atiku Abubakar, has rejected the federal government’s proposed $500 million World Bank loan, warning that the President Bola Tinubu administration should not commit the country to fresh borrowing shortly before the 2027 presidential handover.

The proposed facility is part of a $3.85 billion infrastructure financing initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW), designed to attract private investment into critical sectors of the economy.

According to the World Bank’s Initial Project Information Document, updated on November 4, 2026, the Federal Ministry of Finance is listed as the borrower, while the Nigeria Sovereign Investment Authority (NSIA) would implement the project.

The proposed $500 million financing comprises $400 million from the International Bank for Reconstruction and Development and $100 million from the International Development Association.

The World Bank has scheduled a technical design review for January 21, 2027, while May 25, 2027, is the estimated approval date, four days before the scheduled presidential inauguration.

Reacting in a statement issued by his Director of Strategic Communication, Mr Phrank Shaibu, Mr Atiku argued that the administration should not take decisions that could impose additional financial obligations on its successor.

He described the proposed borrowing as a potential economic burden on the next administration and called for full disclosure of its terms, risks and repayment obligations before any approval.

Mr Atiku also urged the World Bank not to approve the facility under the proposed timetable, insisting that his administration, if elected, would not begin its tenure by taking another loan.

The proposed INFRAGROW initiative is expected to combine the World Bank facility with $200 million in equity from the NSIA and another $200 million from private investors. It also envisages $600 million in commercial debt financing, $100 million in IDA payment guarantees and $2.25 billion in guarantees from other international financial institutions.

The platform would operate through four subsidiaries focused on project preparation, viability gap funding, risk capital and credit guarantees to support infrastructure development and attract private investment.

The World Bank estimates Nigeria’s annual infrastructure financing gap at approximately $100 billion , identifying inadequate investment and weak project preparation as major constraints to economic growth and competitiveness.

The proposed facility would support projects in the energy, transport and water sectors. However, the bank has classified its environmental and social risks as high, citing potential land acquisition, community displacement and environmental damage.

Mr Atiku’s objection comes amid other borrowing proposals by the Tinubu administration. On November 4, 2026, it was reported that President Tinubu had asked the National Assembly to approve a fresh $7.7 billion external borrowing plan to finance projects and programmes in the 2026 budget, replacing an earlier $20.5 billion proposal.

Meanwhile, Nigeria’s total public debt stood at N166.79 trillion as of June 30, 2026, comprising the domestic and external obligations of the federal government, states and the Federal Capital Territory, according to the Debt Management Office.

The proposed $500 million World Bank facility remains at the preparation stage and has yet to receive approval.