The World Bank has approved a fresh $1.25 billion loan for Nigeria to support economic reforms and accelerate job creation, despite growing public concerns over the country’s rising external debt profile.
The funding, approved under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme, was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for Nigeria covering the 2026–2032 period.
According to the global lender, the new six-year framework is designed to promote private sector-led growth, create employment opportunities and improve access to essential services across the country.
In a statement, the World Bank said the framework would guide its engagement with Nigeria by supporting reforms aimed at stimulating investment and expanding economic opportunities.
It explained that the newly approved financing would assist the Federal Government in implementing reforms intended to foster inclusive economic growth and create sustainable jobs.
The approval comes amid increasing criticism from many Nigerians over the Federal Government’s continued reliance on external borrowing, with concerns that previous loans have not translated into significant improvements in citizens’ living standards.
The World Bank, however, maintained that Nigeria’s recent macroeconomic reforms had begun yielding positive results, including stronger economic growth, improved government revenue, increased foreign reserves and renewed investor confidence.
As part of the new partnership framework, the institution said it aims to support initiatives that will provide electricity to 32 million Nigerians, expand broadband access to 58 million people, improve healthcare and nutrition services for 40 million citizens and assist about 9.5 million farmers through enhanced agricultural programmes.
The strategy also prioritises investments in human capital development, digital infrastructure, energy access and agricultural productivity.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority would be to ensure that recent macroeconomic gains translate into tangible improvements in the lives of Nigerians.
According to him, while economic reforms have helped stabilise the economy, sustained progress will depend on addressing structural challenges that hinder private investment and job creation.
“The new Country Partnership Framework provides a roadmap for supporting Nigeria’s efforts to create more and better jobs by promoting private sector-led growth. The challenge now is to convert recent macroeconomic improvements into higher living standards through increased investment and employment,” he said.
The World Bank noted that the $1.25 billion financing package would support reforms aimed at strengthening Nigeria’s competitiveness and laying the foundation for long-term economic growth.
Among the key reform areas identified are the deepening of capital markets, improvements in the regulatory framework for the digital economy and e-governance, accelerated power sector reforms to expand electricity access, reduction of trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area (AfCFTA), improved access to quality agricultural seeds and enhanced domestic revenue mobilisation.
The International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said the country’s ongoing reforms present an opportunity to attract greater private sector investment and unlock long-term economic growth.
Similarly, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, said although Nigeria’s reform agenda had improved the investment climate, challenges remained.
He noted that MIGA would continue to provide political risk insurance and investment guarantees to encourage greater investor confidence.
The latest approval represents the second-largest World Bank financing package secured by Nigeria under President Bola Tinubu’s administration, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Meanwhile, figures from the Debt Management Office (DMO) show that Nigeria’s outstanding 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 indicate that loans from the International Development Association (IDA) rose from $16.56 billion to $18.51 billion, while obligations to the International Bank for Reconstruction and Development (IBRD) increased 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 at the end of 2025, according to the DMO.