The World Bank has approved a new $1.25bn loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration programme, despite ongoing public criticism over the country’s rising debt profile and repeated calls for the Federal Government to cut down on external borrowing.
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‎The approval was disclosed in a statement released on Wednesday, alongside the launch of a new Country Partnership Framework for Nigeria covering the period 2026 to 2032.
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‎According to the World Bank, the framework will serve as a blueprint for its support to Nigeria over the next six years, with a central focus on driving job creation through private sector-led economic growth.
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‎It stated that the new strategy is aimed at expanding opportunities for inclusive growth, while also strengthening key sectors of the economy.
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‎The bank also confirmed the approval of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing, which is designed to support Nigeria’s shift toward a more inclusive and employment-driven economic model.
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‎Public debate had intensified in recent weeks following reports of the fresh loan request, with many Nigerians expressing concern that increasing external borrowing has not significantly improved living standards.
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‎The World Bank noted that Nigeria’s recent economic reforms have contributed to improved macroeconomic indicators, including stronger growth, increased government revenue, higher foreign reserves, and improved investor confidence.
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‎Under the new framework, the bank plans to support expanded access to electricity for about 32 million people, broadband connectivity for 58 million citizens, improved health and nutrition services for 40 million Nigerians, and enhanced agricultural support for around 9.5 million farmers.
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‎The Country Director for Nigeria, Mathew Verghis, said the focus of the programme is to ensure that macroeconomic gains translate into real improvements in living conditions.
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‎He explained that while recent reforms have helped stabilise the economy, more structural changes are needed to attract investment and create sustainable jobs.
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‎The International Finance Corporation also noted that Nigeria’s reform efforts are opening up new investment opportunities, particularly in sectors driven by private enterprise.
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‎However, the Multilateral Investment Guarantee Agency warned that despite progress, investment risks remain, stressing the need for risk mitigation tools such as guarantees and political risk insurance.
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‎The latest approval marks the second-largest World Bank facility secured by Nigeria under President Bola Tinubu’s administration, following a $1.5bn loan approved in 2024.
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‎Data from the Debt Management Office showed that Nigeria’s debt to the World Bank rose significantly, reaching $19.89bn by the end of 2025, up from $17.81bn the previous year.
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‎The figures indicate that the World Bank now accounts for more than one-third of Nigeria’s total external debt stock.