The World Bank has approved a fresh $1.25 billion loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme, despite growing public concerns over the country’s rising external debt profile.

The approval was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework for Nigeria, which will run from 2026 to 2032. The framework is designed to support job creation by promoting private sector-led economic growth.

In a statement, the World Bank said the new partnership would serve as its roadmap for supporting Nigeria over the next six years.

“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026 to 2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the institution said.

It added that the newly approved $1.25 billion Development Policy Financing operation would back reforms aimed at fostering inclusive economic growth and employment.

The approval comes amid criticism from many Nigerians, who have questioned the Federal Government’s continued reliance on external borrowing, arguing that previous loans have not significantly improved living conditions.

According to the World Bank, the framework builds on recent macroeconomic reforms that have strengthened economic growth, increased government revenues, boosted external reserves and improved investor confidence.

Under the initiative, the bank plans to help expand electricity access to 32 million Nigerians, provide broadband services to 58 million people, improve healthcare and nutrition for 40 million citizens, and support 9.5 million farmers through agricultural interventions.

The programme will also focus on improving human capital development, expanding energy and digital infrastructure, and increasing agricultural productivity.

The World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s priority is to ensure recent economic reforms translate into tangible benefits for citizens.

“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,” Verghis said.

He added, “The recent macroeconomic gains have been critical to stabilising the economy, but improving living standards will require addressing structural constraints that limit private investment and job creation.”

The World Bank said the financing would support reforms including the development of capital markets, improvements to the digital economy and e-governance, power sector reforms to accelerate electrification, reduction of trade barriers in line with ECOWAS and AfCFTA commitments, improved access to quality agricultural seeds, and stronger domestic revenue mobilisation.

The International Finance Corporation also expressed confidence in Nigeria’s reform agenda.

Its Divisional Director for Nigeria, Dahlia Khalifa, said, “Nigeria’s long-term growth potential will be shaped by its ability to attract investment, raise productivity and unlock private sector job creation, building on the strength of its rapidly growing population.”

Also commenting, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency, Ed Mountfield, acknowledged the progress made through ongoing reforms but noted that investment risks remain.

“Nigeria’s reform progress is creating important opportunities for private investment, but risks remain for investors. MIGA helps manage those risks through guarantees and political risk insurance, giving investors greater confidence,” he said.

The newly approved facility is the second-largest World Bank loan 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.

Figures from the Debt Management Office show Nigeria’s debt 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, representing 11.7 per cent.

The DMO also reported that the World Bank accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86 billion as of the end of 2025.