NEWS
World Bank Approves Fresh $1.25bn Loan for Nigeria, Unveils Six-Year Growth and Jobs Framework
The World Bank has approved a fresh $1.25 billion loan for Nigeria under its 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 dependence on 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 (CPF) for Nigeria covering the period from 2026 to 2032.
According to the global financial institution, the new framework will serve as a strategic roadmap for its engagement with Nigeria over the next six years, with a major emphasis on creating jobs through private sector-driven economic growth, improving infrastructure, and strengthening human capital development.
“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 World Bank stated, announcing the initiative
The institution further disclosed that:
“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 latest approval comes only weeks after reports emerged that the Federal Government was seeking another $1.25 billion World Bank facility to support ongoing economic reforms, boost competitiveness, and create employment opportunities.
The move had generated widespread public debate, with many Nigerians questioning the country’s increasing reliance on external loans while arguing that previous borrowings have not significantly improved the standard of living or eased economic hardship.
The World Bank explained that the newly approved Country Partnership Framework builds on Nigeria’s recent macroeconomic reforms, which it said have contributed to stronger economic growth, increased government revenues, improved foreign exchange reserves, and greater investor confidence.
Under the framework, the institution plans to support initiatives that will expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens, support 9.5 million farmers across the country, strengthen human capital development, boost agricultural productivity, and expand access to energy and digital infrastructure.
Speaking on the new partnership, the World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria convert its recent economic reforms 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.
The World Bank noted that the $1.25 billion Development Policy Financing operation will back a broad range of reforms aimed at improving Nigeria’s competitiveness and laying the foundation for sustainable economic growth.
According to the statement, the reforms will include deepening Nigeria’s capital markets, modernising regulations governing the digital economy and e-governance, advancing power sector reforms to accelerate electrification, lowering trade barriers in line with Nigeria’s commitments under 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 $1.25bn, 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.
Also commenting on the development, the International Finance Corporation’s Divisional Director for Nigeria, Dahlia Khalifa, said the country’s ongoing reform agenda presents significant opportunities for attracting 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 stated.
Similarly, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, acknowledged that although Nigeria’s reforms have opened new opportunities for investors, certain risks still remain.
According to him:
“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.”
The newly approved facility is now the second-largest single World Bank loan secured by Nigeria under the administration of President Bola Ahmed Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Meanwhile, figures released by the Debt Management Office (DMO) show that Nigeria’s debt exposure to the World Bank has continued to rise.
According to the DMO, 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 data further revealed that loans from the International Development Association (IDA) rose from $16.56 billion to $18.51 billion, while debt owed to the International Bank for Reconstruction and Development (IBRD) increased from $1.24 billion to $1.38 billion during the same period.
Overall, the figures indicate that 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, underscoring the institution’s position as the country’s largest external creditor.