World Bank Approves $1.25bn Nigeria Reform Loan

The World Bank has approved a fresh $1.25 billion loan for Nigeria to support economic reforms and encourage private sector growth.

The funding forms part of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme and was announced on Wednesday alongside the launch of the World Bank’s new Country Partnership Framework for 2026 to 2032. The initiative aims to promote private sector growth, create more jobs, and strengthen key areas of the economy despite growing public concern over Nigeria’s rising debt burden.

According to the World Bank, the financing will back reforms designed to develop capital markets, modernise the digital economy, expand electricity access, improve agriculture, increase government revenue, and reduce trade barriers under ECOWAS and the African Continental Free Trade Area (AfCFTA).

The framework also sets ambitious targets. It seeks to provide electricity access to 32 million Nigerians, broadband connectivity to 58 million people, better health and nutrition services for 40 million citizens, and support for 9.5 million farmers.

World Bank Country Director for Nigeria, Mathew Verghis, said recent economic reforms have helped stabilise the economy, but more work is needed to ensure citizens benefit from those gains.

“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,” he said.

The approval has renewed debate over Nigeria’s debt, as many citizens continue to question the Federal Government’s reliance on external borrowing and why rising debt levels have not produced noticeable improvements in living standards.

Do you think this World Bank loan will deliver meaningful economic benefits for Nigerians?