World Bank Approves $1.25bn Loan for Nigeria Despite Criticism
The World Bank has approved a $1.25 billion Development Policy Financing loan for Nigeria, despite public criticism over the country’s rising debt profile.
The facility is part of a new six-year Country Partnership Framework (CPF) covering 2026–2032, aimed at accelerating private sector-led growth and job creation.
The loan, called the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) DPF, will support reforms to strengthen economic foundations, improve competitiveness, and stimulate private sector investment.
According to the Bank, the programme will back reforms in capital markets, digital economy regulation, power sector restructuring, trade liberalisation under ECOWAS and AfCFTA, agricultural seed access, and domestic revenue mobilisation.
The CPF also sets ambitious targets: expanding electricity access to 32 million Nigerians, broadband connectivity to 58 million people, improved health and nutrition services for 40 million citizens, and support for 9.5 million farmers through higher productivity and better inputs.
World Bank Country Director Mathew Verghis said recent macroeconomic reforms had stabilised Nigeria’s economy but warned that deeper structural challenges must be addressed.
“Translating improved macroeconomic conditions into better living standards will require tackling structural constraints to spur private sector investment and job creation,” he noted.
The Bank’s private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will mobilise capital and provide risk guarantees.
IFC’s Dahlia Khalifa stressed that Nigeria’s long-term growth depends on attracting investment and raising productivity, while MIGA’s Ed Mountfield said guarantees would help investors manage risks in infrastructure and financial services.
The loan is Nigeria’s second-largest World Bank facility under President Tinubu, after the $1.5bn Reforms for Economic Stabilisation DPF approved in June 2024.
Despite the approval, many Nigerians have criticised the country’s reliance on external borrowing, calling for greater accountability and transparency in the use of previous loans.