World Bank Approves $1.25 Billion Loan for Nigeria

The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme, a move aimed at supporting economic reforms, stimulating private sector growth and creating more employment opportunities across the country.

The approval was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for Nigeria, a six-year development strategy that will guide the institution’s support for the country from 2026 to 2032.

According to the World Bank, the new framework is designed to accelerate job creation by promoting private sector-led economic growth while strengthening critical sectors such as energy, agriculture, healthcare, digital infrastructure and human capital development.

The announcement comes at a time when concerns continue to grow over Nigeria’s rising external debt profile. In recent weeks, many Nigerians questioned the Federal Government’s decision to seek another World Bank facility, arguing that previous borrowings have not significantly improved living standards despite years of economic reforms.

Despite the criticism, the World Bank said the new financing package is intended to help Nigeria build on recent macroeconomic reforms that have contributed to stronger economic growth, increased government revenues, improved foreign exchange reserves and renewed investor confidence.

Under the new Country Partnership Framework, the World Bank plans to support projects that will expand electricity access to approximately 32 million Nigerians, provide broadband connectivity for 58 million people, improve health and nutrition services for 40 million citizens, and assist 9.5 million farmers through agricultural development initiatives.

The framework also seeks to strengthen Nigeria’s human capital, improve agricultural productivity and expand access to reliable energy and digital infrastructure, all of which are considered essential for sustainable economic growth and long-term job creation.

Speaking on the new initiative, the World Bank’s Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to help Nigeria transform recent macroeconomic gains into tangible improvements in the lives of ordinary citizens.

According to Verghis, while recent economic reforms have helped stabilise the country’s economy, sustained progress will depend on addressing long-standing structural challenges that limit private sector investment and employment opportunities.

The newly approved $1.25 billion Development Policy Financing operation will also support reforms aimed at improving Nigeria’s business environment and boosting competitiveness. These reforms include strengthening capital markets, modernising regulations governing the digital economy and e-governance, accelerating power sector reforms to improve electricity access, reducing trade barriers in line with Nigeria’s commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improving access to quality agricultural seeds and increasing domestic revenue generation.

The World Bank believes these measures will help create a more inclusive and resilient economy by encouraging private investment, supporting entrepreneurship and generating more employment opportunities across key sectors.

While the new financing is expected to provide additional resources for Nigeria’s ongoing economic reforms, it has also reignited public debate over the country’s growing reliance on external borrowing. Many Nigerians continue to call for greater accountability, efficient use of borrowed funds and policies that translate economic growth into improved living standards for citizens.

As Nigeria continues its economic reform agenda, the effectiveness of the newly approved World Bank loan will likely be measured not only by macroeconomic indicators but also by its ability to create jobs, strengthen infrastructure and improve the everyday lives of millions of Nigerians.