The World Bank has approved a fresh 1.25 billion dollar loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme. The development comes amid widespread public concerns over the country’s mounting debt burden and repeated calls for the Federal Government to reduce its external borrowing. The approval was officially announced in a statement issued by the World Bank on Wednesday, alongside the introduction of a new Country Partnership Framework for Nigeria spanning the years 2026 to 2032. The bank noted that the newly转 framework will guide its strategic support for Nigeria over the next six years, with a primary focus on generating employment opportunities by unlocking private sector-led economic growth.
According to the official statement, “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 global 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 loan approval comes weeks after intense public criticism followed media reports that the Federal Government was pushing for a fresh 1.25 billion dollar World Bank facility to back its economic reforms, job creation, and market competitiveness. Many Nigerians have argued that the expanding external debt of the country has failed to yield tangible improvements in the living standards of the populace. According to the multilateral institution, the new Country Partnership Framework is built upon the recent macroeconomic adjustments implemented by Nigeria, which it stated have led to stronger economic growth, increased government revenues, improved external reserves, and upgraded investor confidence.
The bank explained that the framework is designed to expand electricity access to 32 million Nigerians, deliver broadband connectivity to 58 million individuals, improve health and nutrition services for 40 million citizens, and provide critical support to 9.5 million farmers across the federation. The initiative also aims to strengthen human capital, enhance agricultural productivity, and widen access to both energy and digital infrastructure.
The World Bank Country Director for Nigeria, Mathew Verghis, stated that the financial institution would place its focus on helping Nigeria convert its recent macroeconomic progress into better living conditions for the citizens. Verghis noted, “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,”
The multilateral lender added that the 1.25 billion dollar Development Policy Financing operation is geared toward supporting key reforms aimed at strengthening the economic foundation and competitiveness of the country. According to the statement, “The NAIJA DPF operation, which amounts to $1.25bn, 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 Divisional Director for Nigeria at the International Finance Corporation, Dahlia Khalifa, pointed out that the current reform agenda has opened up viable pathways to attract higher private capital. Khalifa 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, building on the capital of a rapidly growing population,”
In a similar vein, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency, Ed Mountfield, remarked that while the reform strides have created major openings for private investment, certain operational risks still exist for investors. Mountfield stated, “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,”
The latest credit represents the second-largest single financial facility obtained by Nigeria from the World Bank under the administration of President Bola Tinubu. It is surpassed only by the 1.5 billion dollar Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024. Statistical data released by the Debt Management Office showed that the total debt owed by Nigeria to the World Bank climbed from 17.81 billion dollars at the end of 2024 to 19.89 billion dollars as of December 31, 2025, representing an increase of 2.08 billion dollars or 11.7 percent.
The DMO metrics further indicated that outstanding credits from the International Development Association increased from 16.56 billion dollars to 18.51 billion dollars over the same timeframe, while liabilities to the International Bank for Reconstruction and Development went up from 1.24 billion dollars to 1.38 billion dollars. These indicators reveal that the World Bank holds 38.36 percent of the entire external debt stock of Nigeria, which was recorded at 51.86 billion dollars at the end of the 2025 fiscal year.
Nigeria's $1.25bn World Bank loan analysis
This video provides an expert breakdown of the fiscal implications and economic discussions surrounding Nigeria's new multi-billion dollar credit facility.
0 Comments