New NAIJA programme targets jobs, infrastructure and private sector growth as critics warn over rising external debt burden

The World Bank has approved a $1.25 billion loan for Nigeria under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, despite growing public concern over the country’s rising external debt and calls for the Federal Government to curb borrowing.

The approval was announced alongside the launch of the World Bank’s 2026–2032 Country Partnership Framework, which outlines a six-year strategy to support private sector-led growth, job creation, and economic reforms.

According to the bank, the programme is designed to strengthen Nigeria’s competitiveness, improve infrastructure, and create sustainable employment opportunities.

The World Bank said the new financing would support reforms in key sectors, including electricity, agriculture, digital infrastructure, capital markets, and trade.

It also aims to expand electricity access to 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.

World Bank Country Director for Nigeria, Mathew Verghis, said the initiative would help translate recent macroeconomic gains into improved living standards by addressing structural barriers to private investment.

Officials from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) added that the reforms could attract more private investment while reducing risks for investors.

The approval comes amid criticism from Nigerians over the country’s increasing debt profile.

According to the Debt Management Office, Nigeria’s debt to the World Bank rose from $17.81 billion at the end of 2024 to $19.89 billion by December 2025, accounting for more than 38 per cent of the country’s total external debt.

The latest facility is the second-largest World Bank loan secured by the Tinubu administration, following the $1.5 billion economic reform financing approved in June 2024.

While the Federal Government maintains that the funds will accelerate economic growth and job creation, critics continue to question whether rising external borrowing is delivering meaningful improvements in the lives of ordinary Nigerians.