The World Bank has approved a fresh $1.25 billion financing package for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, pressing ahead with new support despite growing public unease over the country’s rising external debt profile.
The approval coincides with the launch of the World Bank’s new Country Partnership Framework (CPF) for 2026–2032, a six-year strategy designed to support Nigeria’s economic transformation by accelerating private sector-led growth, expanding infrastructure and creating jobs.
In a statement released on Wednesday, the World Bank said the new framework would focus on removing structural barriers to investment while strengthening human capital and improving access to critical services.
“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.
Alongside the framework, the bank approved the $1.25 billion Development Policy Financing (DPF) operation, which is intended to support ongoing economic reforms aimed at boosting competitiveness, attracting investment and stimulating employment.
The approval comes weeks after reports that the Federal Government was seeking another World Bank facility triggered widespread criticism, with many Nigerians questioning the continued reliance on foreign borrowing amid worsening living conditions and a rapidly expanding debt stock.
Defending the new programme, the World Bank said recent macroeconomic reforms undertaken by the Nigerian government had begun to stabilise the economy, pointing to stronger growth, improved government revenues, higher foreign reserves and renewed investor confidence.
The institution said its six-year partnership strategy targets expanded electricity access for 32 million Nigerians, broadband connectivity for 58 million people, improved health and nutrition services for 40 million citizens, and support for 9.5 million farmers through agricultural productivity initiatives.
The framework also prioritises energy expansion, digital infrastructure, agricultural reforms and investments in human capital to drive long-term economic growth.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to ensure that recent macroeconomic gains translate into measurable improvements in the lives of ordinary Nigerians.
He noted that while economic stabilisation efforts were necessary, sustained improvements in living standards would depend on removing long-standing structural obstacles that continue to discourage private investment and limit job creation.
The newly approved financing package will back reforms across several sectors, including capital market development, digital economy regulation, power sector restructuring, agricultural productivity and domestic revenue mobilisation.
According to the bank, the programme will also support efforts to reduce trade barriers in line with Nigeria’s commitments under both the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), measures expected to improve market access and ease inflationary pressures.
Other reform priorities include expanding access to improved agricultural seeds, strengthening e-governance systems and accelerating electrification.
The International Finance Corporation (IFC) said Nigeria’s ongoing reform programme has created an opportunity to attract significantly higher levels of private investment.
IFC Divisional Director for Nigeria, Dahlia Khalifa, said unlocking private capital and raising productivity would be critical to generating employment for Nigeria’s rapidly growing population.
Similarly, Ed Mountfield, Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), said reforms had improved investor prospects but acknowledged that significant risks remain.
He said MIGA would continue providing political risk insurance and investment guarantees aimed at giving investors greater confidence to finance projects in Nigeria.
The latest approval represents the second-largest World Bank financing secured by President Bola Tinubu’s administration, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Data released by the Debt Management Office (DMO) show Nigeria’s outstanding 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, or 11.7 per cent, within one year.
The figures indicate that loans from the International Development Association (IDA) rose from $16.56 billion to $18.51 billion, while obligations to the International Bank for Reconstruction and Development (IBRD) climbed from $1.24 billion to $1.38 billion over the same period.
As of the end of 2025, the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion, reinforcing its position as the country’s largest multilateral creditor.
