The World Bank has approved a $1.25 billion Nigeria loan under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite growing public concern over the country’s rising debt and repeated calls for the Federal Government to reduce external borrowing.
The approval was announced alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for Nigeria, covering the period from 2026 to 2032. The six-year framework is designed to support economic reforms, attract private investment, and create more jobs by promoting private sector-led growth.
According to the World Bank, the $1.25 billion Nigeria loan will help strengthen the country’s economy by supporting reforms in key sectors, including electricity, digital infrastructure, agriculture, trade, and capital markets. The institution said the programme is intended to build on Nigeria’s recent macroeconomic reforms, which it believes have improved government revenue, increased foreign reserves, boosted investor confidence, and strengthened economic growth.
Under the new framework, the World Bank plans to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve healthcare and nutrition services for 40 million citizens, and support 9.5 million farmers. It also aims to improve agricultural productivity, strengthen human capital, expand digital infrastructure, and accelerate power sector reforms.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria convert recent economic gains into better living standards for its citizens. He explained that while macroeconomic reforms have helped stabilise the economy, sustained improvements will depend on removing structural barriers that limit private investment and job creation.
The World Bank also stated that the Development Policy Financing operation will support reforms such as deepening Nigeria’s capital markets, modernising digital economy regulations, improving e-governance, advancing electricity reforms, lowering trade barriers under ECOWAS and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation.
International Finance Corporation Divisional Director for Nigeria, Dahlia Khalifa, said the reforms present new opportunities for attracting private investment and creating employment, while the Multilateral Investment Guarantee Agency’s Chief Financial Officer, Ed Mountfield, noted that political risk guarantees would help encourage investor confidence despite existing risks.
The approval comes despite criticism from many Nigerians who argue that the country’s growing external debt has not translated into meaningful improvements in living standards. According to the Debt Management Office (DMO), Nigeria’s debt to the World Bank increased from $17.81 billion at the end of 2024 to $19.89 billion by the end of 2025, an increase of $2.08 billion, representing 11.7 per cent growth.
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The DMO also reported that World Bank loans now account for 38.36 per cent of Nigeria’s total external debt of $51.86 billion, making the institution the country’s largest external creditor. The latest approval is the second-largest World Bank facility secured by Nigeria under President Bola Tinubu, following the $1.5 billion economic reform financing approved in June 2024.
