World Bank approves $1.25bn Nigeria loan despite backlash

The World Bank has approved a $1.25 billion loan for Nigeria, part of its 'Nigeria Actions for Investment and Jobs Acceleration' program, despite ongoing public concerns about the nation's escalating debt burden. This new funding is intended to bolster Nigeria's shift towards a more inclusive economic model, prioritizing job creation driven by the private sector.

The approval coincides with the launch of a new Country Partnership Framework for Nigeria, set to guide the bank's support from 2026 to 2032. This framework emphasizes unlocking private sector growth to generate more and better jobs at scale. The World Bank stated that the new operation supports Nigeria's transition to an inclusive growth model that spurs economic expansion and employment.

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The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth.

This decision follows weeks of public criticism after reports surfaced that the Nigerian government was seeking the $1.25 billion facility. Many Nigerians have voiced concerns that the country's increasing external debt has not led to tangible improvements in living standards.

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Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.

The World Bank highlighted that the new framework builds upon Nigeria's recent macroeconomic reforms, which have reportedly resulted in stronger economic growth, increased government revenues, higher external reserves, and improved investor confidence. The framework aims to significantly expand access to electricity for 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens, and support 9.5 million farmers. It also seeks to strengthen human capital, boost agricultural productivity, and expand access to energy and digital infrastructure.

Mathew Verghis, the World Bank Country Director for Nigeria, stated that the institution will focus on helping Nigeria translate recent macroeconomic gains into improved living standards. He noted that while macroeconomic stability is critical, addressing structural constraints is necessary to spur private sector investment and job creation. The $1.25 billion loan is expected to support reforms aimed at strengthening Nigeria's competitiveness.

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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.