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, despite growing public concern over the country’s rising debt profile and continued reliance on external borrowing.
The approval was announced on Wednesday alongside the unveiling of the World Bank’s new Country Partnership Framework (CPF) for Nigeria, which will guide the institution’s engagement with the country from 2026 to 2032.
According to the World Bank, the six-year strategy is designed to accelerate economic growth through private sector investment while creating more employment opportunities and improving living standards.
The newly approved Development Policy Financing (DPF) operation is expected to support Nigeria’s transition to a more inclusive and competitive economy by advancing key reforms across critical sectors.
The bank said the framework builds on recent macroeconomic reforms undertaken by the Federal Government, noting that the measures have contributed to stronger economic growth, improved government revenue, higher foreign reserves and increased investor confidence.
Under the partnership framework, the World Bank plans to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens, and support about 9.5 million farmers through enhanced agricultural interventions.
The initiative also aims to strengthen human capital development, improve agricultural productivity and expand digital and energy infrastructure across the country.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria convert recent economic gains into tangible improvements in citizens’ welfare.
He noted that while macroeconomic reforms have helped stabilise the economy, addressing structural constraints remains essential to attracting private investment and creating sustainable jobs.
The bank explained that the $1.25 billion facility will finance reforms targeted at strengthening Nigeria’s competitiveness, including deepening capital markets, modernising digital economy regulations and e-governance, accelerating power sector reforms, reducing trade barriers in line with ECOWAS and the African Continental Free Trade Area agreements, improving access to quality agricultural seeds and enhancing domestic revenue mobilisation.
International Finance Corporation Divisional Director for Nigeria, Dahlia Khalifa, said the country’s ongoing reforms had created opportunities to attract greater private sector investment capable of driving long-term economic growth and employment.
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Similarly, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, said Nigeria’s reform efforts had opened new investment opportunities, although risks remained, adding that MIGA would continue to provide guarantees and political risk insurance to boost investor confidence.
The latest approval represents the second-largest World Bank financing secured by the administration of President Bola Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The approval comes amid persistent criticism from Nigerians over the Federal Government’s increasing external borrowing.
According to data from the Debt Management Office (DMO), 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, an increase of $2.08 billion, representing 11.7 per cent growth.
The figures also show that the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion as of the end of 2025, reinforcing concerns over the country’s growing debt obligations even as the government maintains that the loans are intended to support reforms and stimulate economic growth.