The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, a move that comes amid growing public concern over the country’s rising external debt.
The approval was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for Nigeria, which will guide the institution’s engagement with the country from 2026 to 2032.
According to the World Bank, the new framework is designed to support Nigeria’s long-term economic growth by creating more and better jobs through private sector-led investment.
“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 said in a statement.
The bank also confirmed the approval of the $1.25 billion Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation.
It explained that the facility is intended to support Nigeria’s transition toward a more inclusive economy by strengthening reforms aimed at improving competitiveness, attracting investment and expanding employment opportunities.
“The World Bank Group has also approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation, which supports Nigeria’s transition toward a more inclusive growth model that spurs growth and creates jobs,” the statement added.
The latest approval comes weeks after reports emerged that the Federal Government was seeking another World Bank facility, prompting renewed debate over Nigeria’s increasing dependence on external borrowing.
Critics have questioned whether successive loans have translated into meaningful improvements in the lives of ordinary Nigerians, especially amid persistent inflation, unemployment and rising living costs.
Despite the concerns, the World Bank said Nigeria’s recent macroeconomic reforms had begun to yield positive results, including stronger economic growth, improved government revenues, higher external reserves and renewed investor confidence.
Under the new partnership framework, the bank plans to help expand electricity access to 32 million Nigerians, provide broadband connectivity for 58 million people, improve health and nutrition services for 40 million citizens, and support 9.5 million farmers through agricultural interventions.
The programme will also focus on strengthening human capital development, expanding digital infrastructure, improving energy access and boosting agricultural productivity.
The World Bank’s Country Director for Nigeria, Mathew Verghis, said the institution would work with the government to ensure recent economic gains translate into tangible improvements in the lives of 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.
According to the World Bank, the $1.25 billion facility will finance reforms targeted at deepening Nigeria’s capital markets, modernising regulations for the digital economy and e-governance, accelerating power sector reforms, lowering trade barriers in line with the country’s commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds and strengthening domestic revenue mobilisation.
The bank’s International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said the country’s ongoing reforms had created opportunities to attract greater private investment, while the Multilateral Investment Guarantee Agency (MIGA) Vice-President and Chief Financial Officer, Ed Mountfield, noted that guarantees and political risk insurance would help investors participate with greater confidence.
The latest facility is the second-largest single World Bank loan approved for Nigeria under President Bola Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
According to figures released by the Debt Management Office, Nigeria’s debt to the World Bank increased from $17.81 billion at the end of 2024 to $19.89 billion as of December 31, 2025—an increase of $2.08 billion, representing 11.7 per cent.
The data also showed that the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion at the end of 2025, underscoring the institution’s position as the country’s largest multilateral creditor.