Tinubu Secures $1.25 Billion World Bank Loan to Boost Investment and Employment

Tinubu Secures $1.25 Billion World Bank Loan to Boost Investment and Employment.

The World Bank has given the green light to a new seven-year partnership with Nigeria, accompanied by a $1.25 billion financing package aimed at creating jobs and improving access to essential services across the country .

The programme, which runs from 2026 to 2032, is built around a strategy to encourage private sector investment and strengthen key parts of the economy. It includes the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) policy financing, which is designed to support government reforms.

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What the Partnership Means for Nigerians

The Country Partnership Framework (CPF) lays out the World Bank’s plans to support Nigeria’s development over the next six years . According to the bank, the programme aims to deliver several major improvements to the daily lives of Nigerians:

• Energy: Expand electricity access to around 32 million people .
• Digital Connectivity: Provide broadband internet access to 58 million people .
• Healthcare: Improve health and nutrition services for 40 million people .
• Agriculture: Support 9.5 million farmers through measures to boost productivity .

World Bank Country Director for Nigeria, Mathew Verghis, said the new framework places job creation at the centre of the institution’s work in the country . He noted that while recent economic reforms in Nigeria had helped stabilise the economy, the next step was to address deeper issues holding back private investment and employment.

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The NAIJA Financing Package

The $1.25 billion loan, approved as a Development Policy Financing operation, will be channelled through the NAIJA programme . This financing is intended to support government reforms in several areas:

• Deepening capital markets to attract investment.
• Modernising regulations for the digital economy.
• Advancing reforms in the electricity sector.
• Lowering trade barriers in line with regional agreements .
• Strengthening domestic revenue generation .

The World Bank said the combination of policy financing and direct investment in infrastructure and services is aimed at translating recent macroeconomic improvements into better living standards and more job opportunities for Nigerians.

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The approval comes at a time when Nigeria’s debt to the World Bank has been rising. According to the Debt Management Office, Nigeria’s debt to the World Bank increased from $17.81 billion at the end of 2024 to $19.89 billion by December 2025 . The World Bank now accounts for about 38% of Nigeria’s total external debt.

Despite public debate over the country’s borrowing, the World Bank has argued that the financing is crucial for unlocking private investment and supporting reforms that can generate long-term growth.