The World Bank has approved a $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite ongoing public concerns about the country's rising debt profile.
The approval was announced on Wednesday alongside the launch of the World Bank's new Country Partnership Framework for Nigeria, which will guide the institution's support from 2026 to 2032. The strategy focuses on promoting private sector-led growth, expanding employment opportunities and improving access to essential services.
According to the World Bank, the framework aims to increase electricity access, expand broadband connectivity, strengthen healthcare and nutrition services, and support millions of farmers through improved agricultural productivity and infrastructure development.
The $1.25 billion financing package will back reforms designed to improve Nigeria's investment climate. These include strengthening capital markets, modernising digital governance, advancing power sector reforms, easing trade barriers in line with regional agreements, improving access to quality agricultural inputs and boosting domestic revenue generation.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution's priority is to help Nigeria translate recent economic reforms into broader job creation and better living standards by addressing long-standing structural challenges.
The bank noted that recent macroeconomic reforms have contributed to stronger economic growth, improved government revenues, higher external reserves and increased investor confidence, while acknowledging that sustained reforms are needed to deliver inclusive growth.
The latest facility is one of the largest World Bank loans approved for Nigeria during the administration of Bola Tinubu. According to figures from the Debt Management Office, Nigeria's debt to the World Bank rose from $17.81 billion at the end of 2024 to $19.89 billion by the end of 2025, accounting for more than one-third of the country's external debt stock.
