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 concerns 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, which is designed to promote private sector-led growth and create more jobs.

Loan to Fund Key Reforms

According to the World Bank, the financing will support reforms aimed at deepening capital markets, modernising the digital economy, expanding electricity access, strengthening agriculture, improving revenue generation and reducing trade barriers under the ECOWAS and African Continental Free Trade Area (AfCFTA) frameworks.

The programme also 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.

World Bank Country Director for Nigeria, Mathew Verghis, said the initiative is intended 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.

Debt Concerns Persist

The approval comes as concerns continue to grow over Nigeria’s increasing reliance on external borrowing, with many Nigerians questioning why rising debt levels have not resulted in significant improvements in living standards.

According to 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 per cent of Nigeria’s total external debt of $51.86 billion.

The latest facility is the second-largest World Bank loan secured under President Bola Tinubu’s administration after the $1.5 billion economic reform financing approved in June 2024.