World Bank Approves $1.25 Billion Loan for Nigeria Jobs Programme

The World Bank has approved a $1.25 billion loan for Nigeria to support investment and job creation, even as concerns persist over the country’s rising external debt. 

The bank announced the approval Wednesday alongside a new Country Partnership Framework for Nigeria covering 2026 to 2032. The framework will guide World Bank support for the next six years with a focus on private sector-led growth and job creation, it said. 

The bank also approved the Nigeria Actions for Investment and Jobs Acceleration, NAIJA, Development Policy Financing operation. It said the facility will support reforms to strengthen competitiveness and create conditions for sustainable growth. 

The reforms include deepening capital markets, modernizing digital economy and e-governance regulations, advancing power sector reforms, lowering trade barriers under ECOWAS and the African Continental Free Trade Area, improving access to quality agricultural seeds, and strengthening domestic revenue collection, according to the statement. 

The World Bank said the new framework builds on Nigeria’s recent macroeconomic reforms, which it said have led to stronger growth, higher revenue, increased reserves and improved investor confidence. 

The plan targets expanded electricity access for 32 million Nigerians, broadband for 58 million people, health and nutrition services for 40 million citizens, and support for 9.5 million farmers, the bank said. 

World Bank Nigeria Country Director Mathew Verghis said the institution will focus on helping Nigeria translate macroeconomic gains into better living standards. “Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” he said. 

International Finance Corp. Nigeria Director Dahlia Khalifa said Nigeria’s reform agenda could attract more private investment. Multilateral Investment Guarantee Agency Vice President Ed Mountfield said the agency would provide guarantees and political risk insurance to help manage investor risks. 

The $1.25 billion facility is Nigeria’s second-largest single World Bank loan under President Bola Tinubu, after a $1.5 billion loan approved in June 2024. 

Data from the Debt Management Office show Nigeria’s World Bank debt rose to $19.89 billion as of Dec. 31, 2025, from $17.81 billion at the end of 2024, an 11.7% increase. World Bank loans accounted for 38.36% of Nigeria’s total external debt of $51.86 billion as of Dec. 31, 2025, the DMO said.