World Bank approves $1.25bn loan for Nigeria amid debt concerns

The World Bank has approved a fresh $1.25 billion loan for Nigeria under the 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 external borrowing.

 

The approval was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for Nigeria (2026–2032), which is designed to support job creation through private sector-led economic growth over the next six years.

 

According to the World Bank, the new framework builds on Nigeria’s recent macroeconomic reforms, which it said have strengthened economic growth, increased government revenue, boosted external reserves and improved investor confidence.

 

The bank said the programme aims to expand electricity access to 32 million Nigerians, provide broadband connectivity for 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, improve 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 economic reforms 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 World Bank said the $1.25 billion Development Policy Financing facility would support reforms aimed at improving Nigeria’s competitiveness and creating conditions for sustainable economic growth.

 

The reforms include deepening capital markets, modernising the regulatory framework for the digital economy and e-governance, advancing power sector reforms, reducing trade barriers in line with ECOWAS and AfCFTA commitments, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation.

 

International Finance Corporation Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s reform agenda has 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,” she said.

 

Similarly, Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, noted that while Nigeria’s reforms had opened new investment opportunities, risks remained for investors.

 

The latest approval is the second-largest World Bank facility secured by Nigeria under President Bola Tinubu’s administration, following the $1.5 billion economic stabilisation loan approved in June 2024.

 

According to the Debt Management Office (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 11.7 per cent increase. The World Bank currently accounts for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion.