World Bank Approves $1.25bn Loan for Nigeria to Boost Jobs, Private Investment

World Bank Approves $1.25bn Loan for Nigeria to Boost Jobs, Private Investment

The World Bank has approved a fresh $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, providing significant financial support for President Bola Tinubu’s economic reform agenda despite growing public concerns over the country’s rising external debt.

The approval was announced on Wednesday alongside the launch of the World Bank’s Country Partnership Framework (CPF) for Nigeria (2026–2032), a six-year strategy that will guide the institution’s engagement with Africa’s largest economy.

According to the World Bank, the new framework is designed to help Nigeria create more and better jobs by unlocking private sector-led growth, improving infrastructure, strengthening institutions and expanding opportunities for millions of Nigerians.

In a statement announcing the approval, the World Bank said the new Country Partnership Framework builds on Nigeria’s recent macroeconomic reforms and seeks to convert economic gains into improved living standards.

“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 stated.

The bank also confirmed the approval of the $1.25 billion Development Policy Financing (DPF) operation under the NAIJA programme, describing it as a key initiative to strengthen Nigeria’s competitiveness and lay the foundation for sustainable economic growth.

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According to the World Bank, the financing will support a broad package of reforms aimed at improving Nigeria’s business environment and attracting greater private investment.

The programme includes strengthening capital markets to improve access to finance, modernising regulations governing the digital economy and e-governance, accelerating reforms in the power sector to expand electricity access, reducing trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds to boost food production, and strengthening domestic revenue mobilisation and public financial management.

The World Bank believes these reforms will help increase productivity, stimulate investment and create employment opportunities across critical sectors of the Nigerian economy.

As part of the 2026–2032 Country Partnership Framework, the World Bank aims to support projects expected to expand electricity access to approximately 32 million Nigerians, deliver internet connectivity to about 58 million people, improve health and nutrition services for nearly 40 million Nigerians, and support around 9.5 million farmers through increased agricultural productivity and improved access to quality inputs.

The institution also plans to prioritise investments in human capital development, agriculture, digital infrastructure and climate resilience while supporting policies that encourage inclusive economic growth.

The World Bank’s Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria translate recent macroeconomic improvements into tangible benefits for citizens.

According to him, while recent reforms have strengthened economic stability, addressing structural barriers to investment remains essential for creating jobs and reducing poverty.

Similarly, International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s reform agenda has created fresh opportunities for private investment, while Multilateral Investment Guarantee Agency (MIGA) Vice President Ed Mountfield noted that political risk guarantees would encourage more investors to participate in Nigeria’s economy.

The approval has renewed public debate over Nigeria’s growing dependence on external borrowing.

Several economists and civil society organisations have questioned whether successive multilateral loans have translated into meaningful improvements in infrastructure, employment and living standards, particularly as many Nigerians continue to face high inflation, rising food prices and increased living costs.

According to figures 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, representing an increase of $2.08 billion, or 11.7 per cent.

The DMO also reported that the World Bank accounted for 38.36 per cent of Nigeria’s $51.86 billion external debt stock as of the end of 2025, making it the country’s largest multilateral creditor.

Despite the concerns, the World Bank maintains that continued structural reforms, stronger institutions and increased private sector participation remain essential to achieving sustainable economic growth, reducing poverty and creating long-term employment opportunities.

For the Tinubu administration, the latest financing represents another significant vote of confidence from one of Nigeria’s largest development partners. However, analysts say the success of the programme will ultimately depend on transparent implementation, fiscal discipline and whether the reforms deliver measurable improvements in the lives of ordinary Nigerians.

World Bank Approves $1.25bn Loan for Nigeria to Boost Jobs, Private Investment