World Bank approves $1.25 billion loan for Nigeria amid public debt concerns
The World Bank's Board approved a $1.25 billion Development Policy Financing loan for Nigeria as part of a new six-year Country Partnership Framework (CPF) covering 2026-2032. The loan, named the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) DPF, backs government reforms to deepen capital markets, modernise digital-economy rules, advance power-sector reforms, lower trade barriers under ECOWAS and AfCFTA, improve access to quality agricultural seeds and boost domestic revenue mobilisation. The broader CPF aims to expand electricity to 32 million Nigerians, broadband to 58 million, health and nutrition services to 40 million, and support 9.5 million farmers with higher productivity and better inputs. It also leverages the World Bank Group's private-sector arms—IFC and MIGA—to mobilise private capital and offer guarantees for infrastructure and financial-services investments. The approval follows days of online criticism over Nigeria's rising debt stock, with citizens questioning the sustainability of further borrowing and demanding greater transparency on past World Bank funds. While the Bank cites recent macro-economic gains—stronger growth, higher revenues, firmer reserves and improved investor confidence—as a base, it warns that structural constraints must be tackled to turn macro stability into better living standards. Will the promised reforms in power, digital infrastructure and agriculture attract enough private investment to create jobs and ease the debt burden, or will Nigeria's reliance on external loans continue to rise despite the new reforms?