The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme.
The global financial institution announced the approval on Wednesday alongside the launch of a new Country Partnership Framework for Nigeria spanning 2026 to 2032.
According to the bank, the newly endorsed strategy aims to guide its support over the next six years, primarily focusing on creating higher-quality jobs at scale by unlocking private sector-led growth and transitioning the country toward a more inclusive economic model.
The latest approval comes amid criticism after reports emerged that the Federal Government was seeking the facility to finance economic reforms, with many Nigerians arguing that previous borrowing had yet to translate into tangible improvements in their daily living standards.
According to the World Bank, the new framework is built on Nigeria’s recent macroeconomic reforms, which it notes have successfully driven economic growth, bolstered external reserves, and improved investor confidence. The bank plans to use this framework to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, enhance healthcare services for 40 million citizens, and support 9.5 million local farmers.
The $1.25 billion operation will specifically support targeted government initiatives, including modernizing the regulatory framework for the digital economy, advancing power sector reforms, lowering trade barriers in line with regional commitments, and deepening domestic capital markets.
Data from the Debt Management Office reveals that Nigeria’s debt to the World Bank rose from $17.81 billion at the end of 2024 to $19.89 billion by December 31, 2025, meaning the Washington-based lender now accounts for over 38 percent of the nation’s total external debt stock of $51.86 billion.
The institutional leadership expressed optimism about the nation’s economic trajectory while acknowledging the inherent hurdles ahead.
“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 stated in its official release, adding that the operation “supports Nigeria’s transition toward a more inclusive growth model that spurs growth and creates jobs.”
Highlighting the need to convert financial benchmarks into human development, the World Bank Country Director for Nigeria, Mathew Verghis, emphasized the core mission of the project. “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,” Verghis said.
“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.”
Furthermore, the International Finance Corporation’s Divisional Director for Nigeria, Dahlia Khalifa, pointed out that the current reform agenda has opened up major pathways for commercial expansion.
“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,” Khalifa stated.
While noting the positive direction of these policies, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency, Ed Mountfield, cautioned that risk mitigation remains a vital part of the equation for incoming capital.
“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,” Mountfield said.
