The World Bank has approved a new $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite growing public concern over the country's rising debt burden.
The approval was announced on Wednesday alongside the launch of the World Bank's new Country Partnership Framework (CPF) for Nigeria (2026–2032). The six-year strategy aims to support job creation by encouraging private sector-led economic growth.
According to the World Bank, the framework builds on Nigeria's recent economic reforms, which have improved economic growth, increased government revenue, strengthened foreign reserves, and boosted investor confidence.
The new programme targets several key development goals, including:
Expanding electricity access to 32 million Nigerians.
Providing broadband internet to 58 million people.
Improving healthcare and nutrition services for 40 million citizens.
Supporting 9.5 million farmers through improved agricultural productivity.
The $1.25 billion Development Policy Financing (DPF) will support reforms aimed at:
Strengthening capital markets.
Modernising digital economy regulations and e-governance.
Accelerating power sector reforms.
Reducing trade barriers in line with ECOWAS and AfCFTA commitments.
Improving access to quality agricultural seeds.
Increasing domestic revenue generation.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution would help Nigeria transform recent economic gains into better living standards by promoting private sector investment and job creation.
Dahlia Khalifa, Divisional Director of the International Finance Corporation (IFC) for Nigeria, said the country's reform agenda has created opportunities to attract more private investment.
Meanwhile, Ed Mountfield, Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), noted that while reforms have improved investment prospects, guarantees and political risk insurance remain important to encourage investors.
The loan is the second-largest World Bank facility approved for Nigeria under President Bola Tinubu, following the $1.5 billion economic reform 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 by December 31, 2025—an increase of $2.08 billion (11.7%). World Bank loans now account for 38.36% of Nigeria's total external debt, which stood at $51.86 billion at the end of 2025.
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