The World Bank has approved a fresh $1.25bn loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme, amid public concerns over the country’s rising debt burden and repeated calls for the Federal Government to reduce external borrowing.
The approval was announced in a statement issued by the World Bank on Wednesday alongside the launch of a new Country Partnership Framework for Nigeria covering 2026 to 2032.
The bank said the new framework would guide its support for Nigeria over the next six years, with a focus on creating jobs by unlocking 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 weeks after public criticism followed reports that the Federal Government was seeking a fresh $1.25bn World Bank facility to support economic reforms, job creation and competitiveness. Many Nigerians argued that the country’s growing external debt had yet to translate into improved living standards.
According to the World Bank, the new Country Partnership Framework builds on Nigeria’s recent macroeconomic reforms, which it said had resulted in stronger economic growth, higher government revenues, increased external reserves and improved investor confidence.
It said the framework aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers.
It also seeks to strengthen human capital, boost agricultural productivity and expand access to energy and digital infrastructure.
The World Bank Country Director for Nigeria, Mathew Verghis, said the institution would focus on helping Nigeria convert recent macroeconomic gains into improved living standards.
“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 bank said the $1.25bn Development Policy Financing operation would support reforms aimed at strengthening Nigeria’s competitiveness and creating conditions for sustainable growth.
According to the statement, the reforms 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 commitments under the Economic Community of West African States and the African Continental Free Trade Area, improving access to quality agricultural seeds and strengthening domestic revenue mobilisation.
“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 Nigeria’s reform agenda had created opportunities to attract greater 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 speaking, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency, Ed Mountfield, said although Nigeria’s reforms had created opportunities for investors, 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 latest approval is the second-largest single World Bank facility secured by Nigeria under President Bola Tinubu, after the $1.5bn 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 rose from $17.81bn at the end of 2024 to $19.89bn as of December 31, 2025, representing an increase of $2.08bn or 11.7 per cent.
The DMO data showed that loans from the International Development Association increased from $16.56bn to $18.51bn during the period, while debt owed to the International Bank for Reconstruction and Development rose from $1.24bn to $1.38bn.
The figures indicate that the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86bn as of the end of 2025.
