World Bank Approves $1.25bn Loan for Nigeria Amid Rising Debt Concerns
The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite growing public concern over the country’s rising external debt.
The approval was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for 2026–2032, a six-year strategy designed to support private sector-led economic growth and expand employment opportunities across Nigeria.
According to the World Bank, the framework will focus on improving electricity access for 32 million Nigerians, providing broadband connectivity to 58 million people, enhancing health and nutrition services for 40 million citizens, and supporting about 9.5 million farmers. The initiative also aims to strengthen agriculture, human capital development, digital infrastructure and energy access.
The newly approved financing will back key economic reforms, including the expansion of capital markets, improvements in the digital economy and e-governance, power sector reforms, trade liberalisation under ECOWAS and the African Continental Free Trade Area (AfCFTA), better access to quality agricultural seeds, and stronger domestic revenue generation.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria transform recent macroeconomic improvements into tangible benefits for citizens through increased private investment and job creation.
The approval comes amid criticism from many Nigerians who argue that the country’s growing external borrowing has not translated into improved living conditions. According to the Debt Management Office, Nigeria’s debt to the World Bank increased from $17.81 billion at the end of 2024 to $19.89 billion by December 2025, making the World Bank the country’s largest external creditor with over 38 percent of Nigeria’s total external debt.
This latest facility is the second-largest World Bank loan secured by President Bola Tinubu’s administration, following the $1.5 billion economic reform financing approved in June 2024.
