The World Bank has approved a fresh $1.25bn loan facility for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration programme, despite growing public concern over the country’s rising debt profile and continued dependence on external borrowing.
The approval was announced on Wednesday alongside the launch of a new Country Partnership Framework covering 2026 to 2032.
According to the World Bank, the framework will guide its support to Nigeria over the next six years with a focus on creating jobs through private sector-led growth.
In a statement, the institution said, “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 added that it had also approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation aimed at supporting Nigeria’s transition toward a more inclusive growth model.
Loan targets
According to the World Bank, the framework builds on Nigeria’s recent macroeconomic reforms and seeks to expand electricity access to about 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers.
The institution said the programme would also focus on strengthening human capital, increasing agricultural productivity and expanding energy and digital infrastructure.
Speaking on the approval, the World Bank Country Director for Nigeria, Mr Mathew Verghis, said the institution’s priority would be helping Nigeria convert recent economic reforms into improved living conditions.
Mr Verghis stated, “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.”
Reform focus
The World Bank explained that the $1.25bn Development Policy Financing package would support reforms targeted at improving competitiveness and driving sustainable growth.
These reforms include capital market deepening, digital economy and e-governance reforms, electricity sector improvements, reduction of trade barriers in line with regional commitments, improved access to quality agricultural seeds and stronger domestic revenue mobilisation.
The statement read, “The NAIJA DPF operation, which amounts to $1.25bn, supports a set of Government reforms to strengthen the foundations for growth and competitiveness.”
Investment outlook
The International Finance Corporation’s Divisional Director for Nigeria, Ms Dahlia Khalifa, said Nigeria’s reform programme had opened opportunities for greater private investment.
She said, “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.”
Also speaking, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency, Ed Mountfield, noted that investment risks still remain despite recent reforms.
Debt concerns
The approval comes amid increasing public debate over Nigeria’s debt sustainability and questions over whether previous external loans have translated into improved living standards.
According to figures released by the Debt Management Office, Nigeria’s debt exposure to the World Bank increased from $17.81bn at the end of 2024 to $19.89bn as of December 31, 2025.
The figures showed that the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86bn at the end of 2025.
The latest facility is the second-largest single World Bank approval secured under the administration of Bola Ahmed Tinubu after the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Discover more from VOICE OF THE PEOPLE
Subscribe to get the latest posts sent to your email.
