World Bank clears $1.25bn loan for Nigeria jobs programme
Six-year partnership plan backs private sector growth amid rising debt concerns
The World Bank has approved a new $1.25 billion loan for Nigeria under a programme known as the Nigeria Actions for Investment and Jobs Acceleration, or NAIJA DPF, a Development Policy Financing operation designed to support government reforms rather than fund specific infrastructure projects.
The facility is tied to a new six-year Country Partnership Framework covering 2026 to 2032, which sets out the World Bank’s priorities for its engagement with Nigeria over the period.
The framework’s central objective is to create more and better jobs by unlocking private sector-led growth, building on macroeconomic reforms the government has undertaken in recent years, including tax changes, forex unification, and subsidy removal, which the World Bank says have contributed to stronger growth and higher revenue.
Under the programme, funds are expected to support reforms across capital markets, the digital economy and e-governance laws, the power sector, trade barrier reduction in line with ECOWAS and AfCFTA commitments, improved agricultural seed systems, and domestic revenue mobilisation.
The World Bank has outlined specific targets tied to the initiative, including extending electricity access to 32 million Nigerians, broadband connectivity to 58 million people, health and nutrition support to 40 million citizens, and assistance for 9.5 million farmers.
This is the second-largest World Bank loan approved since President Bola Tinubu took office, following a $1.5 billion facility secured in June 2024.
The approval comes as public concern grows over Nigeria’s expanding debt profile. According to World Bank figures, Nigeria’s total debt to the institution rose from $17.81 billion at the end of 2024 to $19.89 billion by the end of 2025.
The World Bank now accounts for 38.36% of Nigeria’s total external debt, which stood at $51.86 billion.
A breakdown of the World Bank debt shows that borrowing through the International Development Association, which offers concessional financing to low-income countries, climbed from $16.56 billion to $18.51 billion.
Debt owed to the International Bank for Reconstruction and Development, which lends at near-market rates to middle-income countries, rose more modestly, from $1.24 billion to $1.38 billion.
The World Bank Group also includes the Multilateral Investment Guarantee Agency, which provides political risk insurance to foreign investors operating in Nigeria.
