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 concern over the country’s rising debt profile and persistent calls for the Federal Government to reduce its reliance on external borrowing.
The approval was announced in a statement issued by the World Bank on Wednesday alongside the unveiling of a new Country Partnership Framework (CPF) for Nigeria covering the period from 2026 to 2032.
According to the global financial institution, the new partnership framework will serve as the blueprint for its engagement with Nigeria over the next six years, with a strong emphasis on creating jobs, stimulating economic growth and encouraging greater private sector investment.
“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 said.
The bank explained that the strategy is designed to help Nigeria tackle longstanding structural economic challenges by supporting reforms capable of attracting investment, expanding businesses and generating sustainable employment opportunities, particularly for the country’s rapidly growing youth population.
According to the World Bank, the framework recognises that job creation remains one of Nigeria’s most pressing development priorities, especially as millions of young people enter the labour market every year.
The institution noted that unlocking the potential of the private sector would be central to achieving inclusive economic growth, reducing poverty and strengthening the country’s economic resilience.
The newly approved $1.25 billion financing is expected to support reforms aimed at improving Nigeria’s investment climate, enhancing economic competitiveness and accelerating private sector-led development.
Although detailed components of the programme were not immediately disclosed, the Nigeria Actions for Investment and Jobs Acceleration initiative is expected to focus on policy reforms that remove barriers to investment, strengthen institutions and encourage both domestic and foreign investors to expand economic activities across various sectors.
The announcement comes at a time when concerns continue to mount over Nigeria’s debt obligations, with economists, civil society organisations and fiscal policy experts repeatedly urging the Federal Government to exercise greater restraint in contracting new external loans.
Nigeria’s public debt has continued to rise in recent years as successive administrations have relied on borrowing to finance infrastructure projects, bridge budget deficits and support economic recovery efforts.
Critics have warned that the increasing debt burden could place additional pressure on government finances through higher debt servicing costs, potentially reducing resources available for critical sectors such as education, healthcare and social welfare.
They have also called for stronger efforts to boost internally generated revenue, improve tax administration, curb revenue leakages and promote economic diversification as more sustainable alternatives to continued borrowing.
However, government officials have consistently defended the country’s borrowing strategy, arguing that concessional loans from development partners such as the World Bank provide relatively affordable financing for critical development programmes and economic reforms.
The Federal Government has also maintained that investments financed through multilateral institutions are necessary to address infrastructure deficits, strengthen institutions and stimulate long-term economic growth.
The World Bank’s new Country Partnership Framework appears to align with these objectives by prioritising reforms that encourage private investment rather than relying solely on public expenditure to drive economic expansion.
Under the framework, the bank is expected to work closely with federal and state governments, development partners and private sector stakeholders to improve the business environment, support enterprise development and strengthen governance systems.
The institution noted that fostering a more vibrant private sector would be essential for generating productive employment opportunities capable of lifting millions of Nigerians out of poverty.
The framework is also expected to support initiatives that improve economic inclusion, strengthen human capital development and build resilience against future economic shocks.
Nigeria remains one of the World Bank’s largest development partners in Africa, with ongoing support across sectors including agriculture, education, healthcare, infrastructure, social protection, digital development and public financial management.
Over the years, the bank has provided billions of dollars in financing for projects aimed at improving service delivery, reducing poverty and supporting economic reforms across the country.
The approval of the latest $1.25 billion facility underscores the institution’s continued commitment to supporting Nigeria’s development agenda, even as debates over the country’s debt sustainability remain active.
As implementation of the new six-year Country Partnership Framework begins, attention is expected to focus on how effectively the new financing translates into measurable improvements in investment, business growth and job creation while ensuring that additional borrowing delivers long-term economic value for Nigerians.
