The World Bank has approved a $1.25 billion loan for Nigeria, pressing ahead despite widespread public concern over the country's swelling debt profile and calls for the government to cut its dependence on external borrowing.
The facility, approved Wednesday under the Nigeria Actions for Investment and Jobs Acceleration programme, was announced alongside a new Country Partnership Framework covering 2026 to 2032, which the bank said would guide its support for Nigeria with a focus on private sector-led job creation.
The approval follows weeks of public criticism after reports emerged that the federal government was seeking the facility to support economic reforms, job creation, and competitiveness. Many Nigerians argued that the country's growing external debt had yet to translate into improved living standards.
The loan ranks as the second-largest single World Bank facility secured under President Bola Tinubu, behind only the $1.5 billion RESET Development Policy Financing approved in June 2024. It brings total World Bank approvals under the Tinubu administration to approximately $10.6 billion since June 2023.
At the current exchange rate of N1,361.4 to the dollar, the facility translates to roughly N1.70 trillion, and would push Nigeria's external debt from $51.86 billion to at least $53.11 billion, while total public debt could rise from $110.97 billion to approximately $112.22 billion if fully disbursed.
The World Bank said the loan would support reforms including deepening capital markets, modernising the digital economy regulatory framework, advancing power sector electrification, lowering trade barriers under ECOWAS and AfCFTA commitments, and strengthening domestic revenue mobilisation. It also aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, and support 9.5 million farmers.
The approval comes days after the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, warned that Nigeria could reject World Bank facilities if approval and disbursement delays stretch beyond six months, stressing that the loans carry repayment obligations and are not grants.
Critics remain unconvinced. With Nigeria's debt service estimated at between N15.5 trillion and N15.9 trillion for 2026, and a borrowing plan that has ballooned to N29.2 trillion, the central question is not whether the loan was approved, but whether the reforms it finances will ever reach the Nigerians still waiting for the dividends of the last ten.
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