The World Bank has approved a new $1.25 billion financing package for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, even as concerns persist over the country's rising debt profile and dependence on external borrowing.
The approval was announced on Wednesday alongside the unveiling of the World Bank's Country Partnership Framework (CPF) for Nigeria for the 2026–2032 period.
According to the bank, the new framework will serve as its strategic roadmap for supporting Nigeria over the next six years, with emphasis on accelerating private sector-led growth, expanding employment opportunities and improving access to essential public services.
"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 said in a statement.
It added that the newly approved $1.25 billion Development Policy Financing would support reforms aimed at promoting inclusive economic growth and strengthening the country's investment climate.
The latest approval comes against the backdrop of public criticism over the Federal Government's increasing resort to multilateral borrowing, with many Nigerians questioning whether previous loans have translated into improved infrastructure, jobs and better living conditions.
Defending the new support package, the World Bank said Nigeria's recent macroeconomic reforms had helped stabilise the economy by improving government revenues, boosting foreign reserves, strengthening economic growth and restoring investor confidence.
The bank said its new partnership framework would focus on expanding electricity access to 32 million Nigerians, providing broadband connectivity for 58 million people, improving health and nutrition services for 40 million citizens, and supporting 9.5 million farmers through agricultural interventions.
The programme also targets improvements in education, energy, digital infrastructure and agricultural productivity to stimulate sustainable economic development.
World Bank Country Director for Nigeria, Mathew Verghis, said the institution would work with the Federal Government to ensure that macroeconomic reforms translate into tangible improvements in the lives of Nigerians.
According to him, addressing long-standing structural challenges remains essential to attracting private investment and creating employment.
He noted that while the reforms had laid the foundation for economic recovery, greater efforts were needed to improve productivity and expand opportunities for businesses.
The World Bank explained that the financing package would back reforms in critical sectors, including capital market development, digital economy regulation, e-governance, electricity sector reforms, trade facilitation under the ECOWAS and African Continental Free Trade Area (AfCFTA) agreements, agricultural development and domestic revenue mobilisation.
The International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said the country's reform agenda offers significant opportunities for increased private sector participation and long-term economic growth.
Similarly, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), Ed Mountfield, said although Nigeria's economic reforms were opening new opportunities for investors, investment risks remained.
He said MIGA would continue to support investors through political risk insurance and guarantee instruments designed to encourage greater private capital inflows.
The latest facility is the second-largest World Bank financing secured by Nigeria under President Bola Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
Meanwhile, data from the Debt Management Office (DMO) show that Nigeria's debt exposure 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, or 11.7 per cent.
According to the DMO, loans from the International Development Association (IDA) increased to $18.51 billion, while obligations to the International Bank for Reconstruction and Development (IBRD) climbed to $1.38 billion.
The figures show that the World Bank remains Nigeria's largest multilateral creditor, accounting for 38.36 per cent of the country's total external debt of $51.86 billion as of the end of 2025.
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