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 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, covering the period from 2026 to 2032.
According to the bank, the framework will guide its support for Nigeria over the next six years, with a focus on promoting private sector-led growth and job creation.
The loan is structured as a Development Policy Financing (DPF) operation, with the Federal Ministry of Finance designated as the implementing agency.
The World Bank said the funding is intended to support Nigeria’s transition from macroeconomic stabilisation to inclusive economic growth by implementing key reforms across critical sectors.
The reforms include deepening capital markets, modernising regulations for the digital economy and e-governance, advancing power sector reforms to improve electricity access, reducing trade barriers in line with Nigeria’s ECOWAS and AfCFTA commitments, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation.
According to the bank, the programme will also expand access to finance, digital services, and electricity while improving competitiveness through reforms in taxation, trade, and agriculture.
Under the new Country Partnership Framework, the World Bank 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 about 9.5 million farmers.
The initiative also seeks to strengthen human capital, boost agricultural productivity, and expand access to energy and digital infrastructure.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution would focus on helping Nigeria translate recent macroeconomic gains into improved living standards.
“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.
Also commenting, the International Finance Corporation’s Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s ongoing reform agenda has created opportunities to attract increased private sector investment.
The latest loan approval comes amid heightened public scrutiny of Nigeria’s debt burden. According to the Debt Management Office (DMO), the country’s total public debt for the federal and state governments rose to N159.27 trillion as of the end of the fourth quarter of 2025.
President Bola Tinubu has also disclosed that Nigeria is expected to spend about $11.6 billion, equivalent to more than N15 trillion, on debt servicing in 2026.
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