The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme.
The approval was announced this week as the World Bank unveiled a new Country Partnership Framework (CPF) for Nigeria covering the 2026–2032 period.
According to the bank, the six-year framework is designed to support Nigeria’s development priorities by promoting private sector-led growth and creating more employment opportunities across the country.
“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 statement read.
It added that the bank 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 latest approval follows recent criticism after reports emerged that the Federal Government was seeking another $1.25 billion facility from the World Bank to finance economic reforms, improve competitiveness and stimulate job creation.
The move drew concerns from many Nigerians, who argued that increasing foreign loans had not translated into better living conditions.
The World Bank said its new partnership framework builds on the country’s recent macroeconomic reforms, which it believes have strengthened economic growth, improved government revenue, increased external reserves and boosted investor confidence.
As part of 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 citizens and support about 9.5 million farmers.
The framework also targets improvements in human capital development, agricultural productivity, energy supply and digital infrastructure.
Mathew Verghis, country director for Nigeria, World Bank, said the institution’s support would focus on ensuring that recent economic reforms deliver tangible benefits for Nigerians.
“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,” he said.
The bank said the $1.25 billion Development Policy Financing operation is expected to back reforms aimed at improving Nigeria’s business environment and strengthening long-term economic growth.
According to the statement, the planned reforms include expanding capital markets, updating regulations for the digital economy and e-governance, accelerating electricity sector reforms, reducing trade barriers in line with Nigeria’s commitments under the Economic Community of West African States and the African Continental Free Trade Area, improving access to quality agricultural seeds and increasing domestic revenue generation.
“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, International Finance Corporation, said ongoing reforms had positioned the country to attract more private sector 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.
Also speaking, Ed Mountfield, vice-president and chief financial officer, Multilateral Investment Guarantee Agency, said although Nigeria’s reforms had created opportunities for investors, risks 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.
The newly approved facility is the second-largest single World Bank loan secured by Nigeria since President Bola Ahmed Tinubu assumed office, behind the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
