The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, as part of a new six-year strategy aimed at supporting private sector-led growth, job creation and economic reforms.
The approval comes amid growing public concern over Nigeria’s rising debt profile and renewed calls for the Federal Government to reduce its dependence on external borrowing.
The World Bank announced the approval on Wednesday alongside the unveiling of its new Country Partnership Framework (CPF) for Nigeria, which will guide the institution’s engagement with the country from 2026 to 2032.
According to the global lender, the new framework is designed to promote sustainable economic growth by addressing structural constraints, improving infrastructure and creating more employment opportunities through increased private sector participation.
“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 bank said in a statement.
It added that it had also approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation to support the country’s transition toward a more inclusive and competitive economy.
“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 noted.
The latest approval follows recent public criticism after reports emerged that the Federal Government was seeking another $1.25 billion facility from the World Bank despite the country’s rising debt obligations.
Many Nigerians have questioned the increasing level of external borrowing, arguing that previous loans have not translated into noticeable improvements in living standards, infrastructure or employment.
Despite the concerns, the World Bank said Nigeria’s recent macroeconomic reforms had begun yielding positive results, including stronger economic growth, improved government revenues, higher foreign exchange reserves and renewed investor confidence.
Under the new Country Partnership Framework, the bank plans to support programmes that will provide electricity access to 32 million Nigerians, expand broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and assist 9.5 million farmers through increased agricultural productivity.
The framework also prioritises investments in human capital development, digital infrastructure, energy access and agricultural transformation.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s focus would be on helping Nigeria convert recent macroeconomic improvements into tangible benefits for ordinary 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,” Verghis said.
“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,” he added.
According to the World Bank, the $1.25 billion Development Policy Financing operation will support reforms aimed at strengthening Nigeria’s competitiveness and improving the business environment.
The reforms include deepening capital markets, modernising regulations for the digital economy and e-governance, accelerating power sector reforms to improve electricity supply, lowering trade barriers in line with Nigeria’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 NAIJA DPF operation, which amounts to $1.25 billion, 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 bank stated.
The International Finance Corporation’s Divisional Director for Nigeria, Dahlia Khalifa, said the ongoing reforms had created an opportunity to attract more private investment into 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, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, acknowledged the progress recorded under Nigeria’s reform programme but noted that investment risks 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 said.
The newly approved facility is the second-largest single World Bank loan secured by the Tinubu administration after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Data from the Debt Management Office shows that 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, representing an increase of $2.08 billion or 11.7 per cent.
The figures indicate that loans from the International Development Association rose from $16.56 billion to $18.51 billion during the period, while debt owed to the International Bank for Reconstruction and Development increased 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 as of the end of 2025, making it the country’s largest multilateral creditor.