The World Bank has approved a fresh $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) programme, despite growing public concern 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, which will guide the institution’s engagement with the country from 2026 to 2032.
According to the World Bank, the new framework was designed to support Nigeria’s efforts to create more and better jobs by unlocking private sector-led growth and accelerating economic transformation.
“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 statement said.
The bank added that it had “also approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation, which supports Nigeria’s transition toward a more inclusive growth model that spurs growth and creates jobs.”
The latest approval comes just weeks after reports that the Federal Government was seeking another $1.25 billion World Bank facility sparked criticism from many Nigerians, who questioned the country’s increasing dependence on external borrowing despite persistent economic hardship and limited improvement in living standards.
six-year Country Partnership Framework builds on Nigeria’s recent macroeconomic reforms, which it believes have strengthened economic growth, boosted government revenues, increased external reserves and improved investor confidence.
Under the framework, the bank plans to support initiatives that will provide electricity access to 32 million Nigerians, expand broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens, and assist 9.5 million farmers through enhanced agricultural productivity.
The programme will also focus on strengthening human capital, expanding digital infrastructure, improving energy access and supporting agricultural development.
The World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority was to help Nigeria translate recent economic reforms into tangible improvements in the lives of citizens.
“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,” Verghis said.
According to the World Bank, the $1.25 billion Development Policy Financing operation will back a series of reforms aimed at improving Nigeria’s competitiveness and laying the foundation for sustainable economic growth.
The institution said the reforms include deepening capital markets, modernising regulations for the digital economy and e-governance, accelerating power sector reforms to expand 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.
“The NAIJA DPF operation, which amounts to $1.25 billion, supports a set of Government reforms to strengthen the foundations for growth and competitiveness.
“These include deepening capital markets, modernising the regulatory framework for the digital economy and e-governance, advancing power sector reforms to accelerate electrification, lowering trade barriers in line with Nigeria’s ECOWAS and AfCFTA commitments to help ease price pressures, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation,” the World Bank stated.
The International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said the country’s ongoing reforms present significant opportunities to attract greater private sector 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, building on the capital of a rapidly growing population,” Khalifa said.
Similarly, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, acknowledged the progress made by Nigeria while stressing the need to mitigate investment risks.
“Nigeria’s reform progress is creating important opportunities for private investment, but risks remain for investors. MIGA’s role is to help manage these risks—through guarantees and political risk insurance—so that investors can step in with confidence,” he said.
The newly approved facility is the second-largest single World Bank loan secured by Nigeria under the administration of President Bola Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
However, the latest approval comes amid growing concerns over Nigeria’s rising debt obligations.
According to figures released by 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 increase of $2.08 billion, or 11.7 per cent.
The DMO data showed that debt owed to 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 as of the end of 2025, underscoring its position as the country’s largest multilateral creditor.
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