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 debt burden.
The approval was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework for Nigeria covering 2026 to 2032. The framework is aimed at driving private sector-led economic growth, creating jobs and supporting key development reforms.
According to the World Bank, the financing will be used to deepen capital markets, modernise Nigeria’s digital economy, expand electricity access, strengthen agriculture, improve domestic revenue generation and reduce trade barriers under ECOWAS and the African Continental Free Trade Area (AfCFTA).
The bank also disclosed that the framework targets electricity access for 32 million Nigerians, broadband connectivity for 58 million people, improved health and nutrition services for 40 million citizens, and support for 9.5 million farmers across the country.
World Bank Country Director for Nigeria, Mathew Verghis, said the objective is to ensure that recent economic reforms translate into tangible improvements in the lives of Nigerians.
“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,” he said.
The latest approval comes amid growing criticism of the Federal Government’s continued reliance on external borrowing, with many Nigerians questioning why increasing debt has not resulted in significant improvements in living standards.
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 2025, representing an increase of $2.08 billion. The World Bank now accounts for 38.36% of Nigeria’s total external debt of $51.86 billion.
