The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA DPF) 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 World Bank, the six-year framework is designed to support Nigeria’s economic transformation by promoting private sector-led growth, creating jobs and improving living standards.
“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 institution said in a statement.
It added that the newly approved $1.25 billion Development Policy Financing (DPF) operation would support Nigeria’s transition to a more inclusive economic model focused on job creation and sustainable growth.
The approval comes weeks after reports emerged that the Federal Government was seeking another World Bank facility to finance ongoing economic reforms and improve competitiveness. The move attracted criticism from many Nigerians who questioned the increasing reliance on external loans despite worsening living conditions.
The World Bank said the new partnership framework builds on recent macroeconomic reforms, which it credited with strengthening economic growth, boosting government revenues, increasing foreign reserves and improving investor confidence.
Under the programme, the bank aims to expand electricity access to 32 million Nigerians, provide broadband connectivity for 58 million people, improve healthcare and nutrition services for 40 million citizens, and support 9.5 million farmers through improved agricultural productivity.
The framework also prioritises investments in human capital development, energy infrastructure, digital connectivity and agriculture.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria convert recent macroeconomic gains into tangible improvements in citizens’ lives.
According to him, while economic reforms have helped stabilise the economy, sustained improvements in living standards will depend on removing structural barriers that hinder private investment and job creation.
The World Bank explained that the $1.25 billion financing package would support reforms aimed at strengthening Nigeria’s competitiveness through deeper capital markets, improved digital economy regulations, e-governance reforms, accelerated power sector reforms and increased electrification.
Other reforms include reducing trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds and strengthening domestic revenue mobilisation.
The International Finance Corporation’s Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s reform agenda has created fresh opportunities to attract private investment capable of driving long-term economic growth and employment.
Similarly, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, acknowledged that while reforms have improved investor confidence, significant risks remain. He noted that MIGA would continue providing guarantees and political risk insurance to encourage more private investment in the country.
The latest approval represents the second-largest World Bank financing package secured by 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.
Meanwhile, data from the Debt Management Office (DMO) showed that 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 figures further revealed that loans from the International Development Association (IDA) rose from $16.56 billionto $18.51 billion, while debt owed to the International Bank for Reconstruction and Development (IBRD) increased from $1.24 billion to $1.38 billion.
Overall, the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion at the end of 2025, according to the DMO.