The World Bank has approved a new $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite mounting public concerns over the country’s increasing debt profile and persistent calls for the Federal Government to scale back external borrowing.
The approval was announced on Wednesday as the World Bank unveiled a new Country Partnership Framework (CPF) for Nigeria, which will guide its engagement with the country from 2026 to 2032.
According to the global lender, the six-year strategy is designed to stimulate employment by promoting private sector-led economic expansion and supporting key structural reforms.
“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the institution stated.
The bank also confirmed the approval of the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing programme, saying it would assist the country’s transition towards a more inclusive economy capable of generating sustainable jobs and growth.
The latest financing package comes only weeks after reports that the Federal Government was seeking another $1.25 billion World Bank facility sparked criticism from many Nigerians, who questioned the growing reliance on foreign loans despite the country’s worsening debt burden.
Many observers argued that repeated borrowing had failed to significantly improve living standards or ease economic hardship.
According to the World Bank, the new Country Partnership Framework builds on Nigeria’s recent macroeconomic reforms, which it said have contributed to stronger economic performance, improved government revenue, higher foreign reserves and renewed investor confidence.
Over the life of the programme, the bank intends to support projects aimed at providing electricity access to 32 million Nigerians, broadband connectivity to 58 million people, improved healthcare and nutrition services for 40 million citizens, and assistance for about 9.5 million farmers.
The framework also prioritises investments in human capital development, agricultural productivity, energy supply and digital infrastructure.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s primary objective is to help Nigeria transform recent macroeconomic improvements into tangible benefits for citizens.
“Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.
“The recent macroeconomic gains have been critical to help stabilise the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” Verghis said.
The World Bank explained that the $1.25 billion Development Policy Financing operation would back reforms designed to strengthen Nigeria’s competitiveness while laying the foundation for long-term economic growth.
Among the reforms identified are measures to deepen capital markets, modernise regulations governing the digital economy and electronic governance, accelerate power sector reforms to improve electricity access, reduce trade barriers in line with Nigeria’s obligations under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improve farmers’ access to quality seeds, and boost domestic revenue generation.
“The NAIJA DPF operation, which amounts to $1.25bn, supports a set of Government reforms to strengthen the foundations for growth and competitiveness.
“These include deepening capital markets, modernising the regulatory framework for the digital economy and e-governance, advancing power sector reforms to accelerate electrification, lowering trade barriers in line with Nigeria’s ECOWAS and AfCFTA commitments to help ease price pressures, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation,” the statement added.
International Finance Corporation Divisional Director for Nigeria, Dahlia Khalifa, said ongoing reforms had opened new opportunities for private investment across the country.
“Nigeria’s long-term growth potential will be shaped by the economy’s ability to attract investment, raise productivity, and unleash private sector job creation, building on the capital of a rapidly growing population,” she said.
Similarly, Multilateral Investment Guarantee Agency Vice-President and Chief Financial Officer, Ed Mountfield, acknowledged that although reforms had improved the investment climate, challenges remained.
“Nigeria’s reform progress is creating important opportunities for private investment, but risks remain for investors. MIGA’s role is to help manage these risks—through guarantees and political risk insurance—so that investors can step in with confidence,” he stated.
The newly approved loan represents the second-largest single World Bank financing secured by Nigeria during President Bola Tinubu’s administration, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Figures published by the Debt Management Office show that Nigeria’s debt to the World Bank increased from $17.81 billion at the end of 2024 to $19.89 billion by December 31, 2025, representing an increase of $2.08 billion, or 11.7 per cent.
The data indicated that debt owed to the International Development Association rose from $16.56 billion to $18.51 billion, while obligations to the International Bank for Reconstruction and Development climbed from $1.24 billion to $1.38 billion.
Overall, the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion at the close of 2025.
