WORLD BANK APPROVES $1.25BN LOAN FOR NIGERIA, UNVEILS SIX-YEAR GROWTH STRATEGY
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By Aishat Momoh. O.
The World Bank has approved a $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, which will guide the institution’s engagement with the country from 2026 to 2032.
According to the World Bank, the new framework is designed to support Nigeria’s efforts to create more and better jobs by promoting private sector-led economic growth.
“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 bank said in a statement.
It added that it had also approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation to support the country’s transition towards a more inclusive and job-driven economy.
The approval comes weeks after widespread criticism followed reports that the Federal Government was seeking an additional $1.25 billion facility from the World Bank, with many Nigerians expressing concerns over the country’s increasing debt burden and its limited impact on living standards.
According to the World Bank, the six-year partnership framework builds on Nigeria’s recent macroeconomic reforms, which it said have contributed to stronger economic growth, improved government revenues, higher external reserves and renewed investor confidence.
Under the framework, the bank plans to support programmes aimed at providing electricity access to 32 million Nigerians, broadband connectivity for 58 million people, improved health and nutrition services for 40 million citizens, and enhanced agricultural support for 9.5 million farmers.
The initiative will also focus on strengthening human capital development, expanding energy and digital infrastructure, and boosting agricultural productivity.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s strategy is aimed at translating recent macroeconomic gains into tangible improvements in the lives of Nigerians.
“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,” Verghis said.
He noted that while recent reforms had helped stabilise the economy, sustained improvements in living standards would depend on addressing structural constraints limiting private investment and job creation.
The World Bank said the $1.25 billion financing would support key reforms targeted at strengthening Nigeria’s competitiveness and long-term economic growth.
These 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 commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation.
International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said the country’s ongoing reforms have created new opportunities to attract private investment.
She noted that unlocking investment, improving productivity and encouraging private sector job creation would be critical to harnessing Nigeria’s growing population for sustainable economic growth.
Also commenting, Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, said the country’s reforms had improved investor confidence but acknowledged that investment risks remained.
He said MIGA would continue to provide guarantees and political risk insurance to encourage investments in key sectors such as infrastructure and financial services.
The newly approved facility is the second-largest World Bank loan secured by Nigeria under President Bola Tinubu’s administration, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
According to data released by the Debt Management Office (DMO), Nigeria’s debt to the World Bank rose 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 debt consists of obligations to the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD), with IDA loans accounting for the larger share.
The DMO figures further showed that World Bank loans now account for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion, underscoring the lender’s position as the country’s largest multilateral creditor.
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