Nigeria has secured a fresh $1.25 billion loan from the World Bank under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite growing public concerns over the country's rising debt profile and repeated calls for the Federal Government to reduce external borrowing. The approval was announced on Wednesday alongside the launch of the World Bank's new Country Partnership Framework (CPF) for Nigeria, which will run from 2026 to 2032 and guide the institution's development support over the next six years.
In a statement, the World Bank said the framework is designed to drive job creation by promoting private sector-led growth.
“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 statement read. It added that the bank had “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 approval comes only weeks after reports that the Federal Government was pursuing another $1.25 billion World Bank loan sparked criticism from many Nigerians, who questioned why the country's increasing external debt has not translated into noticeable improvements in living standards.
According to the World Bank, the new partnership framework builds on Nigeria's recent macroeconomic reforms, which it said have strengthened economic growth, increased government revenue, boosted external reserves and improved investor confidence.
The institution said the programme aims 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 targets improvements in human capital development, agricultural productivity, energy access and digital infrastructure.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution's priority is to ensure recent economic reforms translate into tangible benefits for Nigerians.
“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,” he said.
The World Bank explained that the $1.25 billion Development Policy Financing (DPF) facility will back reforms aimed at improving Nigeria's competitiveness and creating conditions for sustainable economic growth.
According to the statement, the reforms include expanding capital markets, modernising regulations for the digital economy and e-governance, advancing power sector reforms to accelerate electrification, reducing 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 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.
The International Finance Corporation's Divisional Director for Nigeria, Dahlia Khalifa, said ongoing reforms have created fresh opportunities to attract private investment.
“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.
Also commenting, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, acknowledged that while reforms have improved the investment climate, challenges remain.
“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 latest facility is the second-largest 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.
Figures from the Debt Management Office (DMO) show that Nigeria's debt to the World Bank rose from $17.81 billion at the end of 2024 to $19.89 billion by December 31, 2025, an increase of $2.08 billion, or 11.7 per cent.
The DMO data further indicate that debt owed to the International Development Association (IDA) increased from $16.56 billion to $18.51 billion, while obligations to the International Bank for Reconstruction and Development (IBRD) rose from $1.24 billion to $1.38 billion during the same period.
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.
