World Bank Approves $1.25 Billion Nigeria Loan to Support Reforms

World Bank approves $1.25 billion Nigeria loan to back reforms, jobs

The World Bank has approved a $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, alongside a new six-year strategy focused on private sector-led growth and employment.

The lender said the financing was approved as it unveiled its Country Partnership Framework (CPF) for Nigeria covering 2026-2032, which is designed to support the country’s development priorities through economic reforms, infrastructure investment and job creation.

“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 said in a statement.

It added that it had “also approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation, which supports Nigeria’s transition toward a more inclusive growth model that spurs growth and creates jobs.”

The approval comes as Africa’s largest economy continues to pursue reforms under President Bola Ahmed Tinubu, although additional external borrowing has drawn criticism from some Nigerians concerned about the country’s rising debt burden and the limited improvement in living standards.

The World Bank said the new framework builds on Nigeria’s recent macroeconomic reforms, which it said had strengthened economic growth, improved government revenue, increased external reserves and boosted investor confidence.

Under the programme, the bank plans to help expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million people and support about 9.5 million farmers.

“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.

“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,” said World Bank Country Director for Nigeria Mathew Verghis.

The bank said the $1.25 billion Development Policy Financing operation would support reforms including expanding capital markets, modernising regulations for the digital economy and e-governance, accelerating power sector reforms, reducing trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area, improving access to quality agricultural seeds and strengthening domestic revenue mobilisation.

“The NAIJA DPF operation, which amounts to $1.25bn, supports a set of Government reforms to strengthen the foundations for growth and competitiveness.

“These include deepening capital markets, modernising the regulatory framework for the digital economy and e-governance, advancing power sector reforms to accelerate electrification, lowering trade barriers in line with Nigeria’s ECOWAS and AfCFTA commitments to help ease price pressures, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation.”

Dahlia Khalifa, divisional director for Nigeria at the International Finance Corporation, said the reforms could help attract more private investment.

“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,” she said.

Ed Mountfield, vice president and chief financial officer of the Multilateral Investment Guarantee Agency, said reforms had improved investment prospects but challenges remained.

“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,” he said.

According to Nigeria’s Debt Management Office, the country’s debt to the World Bank rose to $19.89 billion at the end of 2025 from $17.81 billion a year earlier, with the lender accounting for 38.36% of Nigeria’s total external debt of $51.86 billion. The latest facility is the second-largest single World Bank loan approved for Nigeria since Tinubu took office, after a $1.5 billion policy financing approved in June 2024.

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