The World Bank has approved a $1.25bn loan for Nigeria under its Nigeria Actions for Investment and Jobs Acceleration programme, despite recent public backlash over the country’s rising debt burden and calls by many Nigerians for the lender to halt further borrowing.

The approval was announced in a statement issued by the World Bank on Wednesday, alongside the launch of a new Country Partnership Framework for Nigeria covering 2026 to 2032.

The bank said the new framework would guide its support for Nigeria over the next six years, with a focus on creating jobs by unlocking private sector-led growth.

“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 approval comes weeks after many Nigerians criticised the proposed loan on social media, arguing that the country’s growing external debt had not translated into improved living standards.

The backlash began after The PUNCH exclusively reported that the Federal Government stepped up engagement with the World Bank for a fresh $1.25bn loan to support economic reforms, job creation and competitiveness.

According to the statement issued on Wednesday, the Country Partnership Framework builds on Nigeria’s recent macroeconomic reforms, which it said had delivered stronger economic growth, higher government revenues, increased external reserves and improved investor confidence.

The framework seeks to 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 9.5 million farmers. It also aims to strengthen human capital, boost agricultural productivity, and expand access to energy and digital infrastructure.

In the statement, the World Bank Country Director for Nigeria, Mathew Verghis, said the institution’s strategy would focus on helping Nigeria convert recent macroeconomic gains into better living standards.

“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 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.”

The statement said the $1.25bn financing would support reforms aimed at strengthening the foundations for growth and competitiveness.

It listed the reforms to 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 commitments under the Economic Community of West African States and the African Continental Free Trade Area, improving access to quality agricultural seeds and strengthening domestic revenue mobilisation.

The statement read, “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, modernizing 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 mobilization.”

The bank said the operation formed part of its broader support for Nigeria through policy reforms, investments and financing in energy, digital infrastructure, agriculture, private sector development and social protection to promote job creation, economic resilience and poverty reduction.

The International Finance Corporation Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s reform programme had created opportunities to attract more private 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.

Khalifa added that the World Bank Group would work with Nigeria to unlock private investment, expand access to infrastructure and essential services, and create conditions for businesses to innovate and compete.

Also, the Vice-President and Chief Financial Officer of the Multilateral Investment Guarantee Agency, Ed Mountfield, said although Nigeria’s reforms had opened new 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.

He added that the World Bank Group Guarantee Platform would expand support for priority sectors such as infrastructure and financial services to help unlock investment, jobs and economic growth.

The approved loan is the second-largest single World Bank facility secured under President Bola Tinubu, behind only the $1.5bn Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

The PUNCH recently reported that Nigeria’s debt to the World Bank rose by $2.08bn in one year to $19.89bn as of December 31, 2025, according to an analysis of external debt stock data released by the Debt Management Office.

The figure represents an 11.7 per cent increase from the $17.81bn owed to the global lender as of December 31, 2024. The World Bank debt comprises loans from the International Development Association and the International Bank for Reconstruction and Development.

The IDA provides concessional grants and loans to low-income countries, while the IBRD provides financial products and policy advice mainly to middle-income and creditworthy developing countries.

DMO data showed that Nigeria’s IDA debt rose from $16.56bn in 2024 to $18.51bn in 2025, an increase of $1.94bn or 11.73 per cent. IBRD exposure also increased from $1.24bn to $1.38bn, representing an increase of $141.84m or 11.41 per cent.

The increase means World Bank loans accounted for 38.36 per cent of Nigeria’s total external debt stock of $51.86bn as of the end of 2025.