The World Bank has approved a fresh $1.25 billion loan for Nigeria to fund its new “Nigeria Actions for Investment and Jobs Acceleration” (NAIJA) program. This development comes amid escalating public concern regarding the nation’s rising external debt profile and widespread calls for the federal government to curb foreign borrowing.
Announced alongside the launch of the World Bank’s new Country Partnership Framework (CPF) for Nigeria spanning 2026 to 2032, the funding is designed to transition the country toward an inclusive growth path and foster private sector-led job creation.
Targeted Impacts and the Country Partnership Framework
The newly approved framework sets out a six-year strategy focused on addressing structural obstacles in Nigeria’s economy. Under this strategy, the World Bank aims to achieve several ambitious socio-economic targets, including:
- Expanding electricity access to 32 million Nigerians.
- Providing broadband connectivity to 58 million citizens.
- Improving health and nutrition services for 40 million individuals.
- Supporting 9.5 million farmers with improved resources.
According to Mathew Verghis, the World Bank Country Director for Nigeria, the primary focus is now on translating recent macroeconomic stabilizations into tangible improvements in daily living standards. Verghis noted that while recent reforms have helped stabilize the economy, resolving structural constraints is essential to stimulate private investment.
Mounting Backlash and Rising National Debt
The approval follows weeks of intense domestic criticism. Many Nigerians argue that the government’s aggressive external borrowing has yet to yield measurable improvements in the quality of life, even as debt servicing costs weigh heavily on the national budget.
This $1.25 billion facility represents the second-largest single funding package approved by the lender under President Bola Tinubu’s administration, surpassed only by the $1.5 billion economic stabilization package approved in June 2024. Data from Nigeria’s Debt Management Office (DMO) reveals that Nigeria’s debt to the World Bank surged 11.7 percent from $17.81 billion at the end of 2024 to $19.89 billion by December 31, 2025. This increase means the World Bank now holds 38.36 percent of Nigeria’s total external debt stock, which stood at $51.86 billion at the end of 2025.
Proposed Reforms and Investment Guarantees
The NAIJA program is slated to support a series of policy reforms designed to boost competitiveness. Key focus areas include modernizing digital economy regulations, deepening capital markets, lowering trade barriers in alignment with ECOWAS and AfCFTA protocols, and improving agricultural seed quality.
Dahlia Khalifa, the International Finance Corporation’s (IFC) Divisional Director for Nigeria, highlighted that the ongoing reform agenda is key to unlocking the economic potential of Nigeria’s growing population. Meanwhile, Ed Mountfield, Vice-President of the Multilateral Investment Guarantee Agency (MIGA), acknowledged that while opportunities are expanding, risk mitigation remains crucial. Mountfield stated that MIGA will provide guarantees and political risk insurance to help secure private investor confidence.