World Bank Approves $1.25bn Nigeria Loan Despite Backlash
The World Bank has endorsed a fresh $1.25bn loan for Nigeria under its Actions for Investment and Jobs Acceleration programme. The endorsement came alongside the launch of a new Country Partnership Framework spanning 2026 to 2032. This development follows intense public anxiety over the country’s soaring external debt profile. Many citizens note that previous debt accumulations have failed to improve domestic living standards. The multilateral lender brushed aside these concerns to seal the deal.
This facility ranks as the second-largest single World Bank package secured under the current administration. It trails only the $1.5bn economic stabilisation package approved two years ago. The fresh credit line pushes total World Bank approvals under President Bola Tinubu toward $10.6bn. Total public debt will now climb past N160trn. Bureaucratic bottlenecks often delay actual cash disbursement. The Federal Ministry of Finance will coordinate the implementation.
The Washington-based lender insists that recent macroeconomic reforms justify the fresh credit. Official data show higher government revenues, stronger economic growth, and boosted external reserves. The bank intends the new framework to expand electricity access to 32 million Nigerians. It also aims to supply broadband connectivity to 58 million people. Improved nutrition and health services will target 40 million citizens. Nearly ten million farmers will also receive support.
International creditors face rising political heat over their lending choices. Opposition figures recently labeled the government’s borrowing habit as economic vandalism. The public even swarmed official social media channels to demand a credit freeze. The lender briefly restricted online interactions during the height of the digital protest. Officials blamed the incident on minor technical glitches. The high-risk rating of the operation confirms underlying institutional anxiety.
Fulfilling the strict policy conditions remains the ultimate hurdle for Abuja. The Accountant-General recently warned that Nigeria might reject delayed loan agreements. Government officials demand faster disbursement to meet immediate infrastructure priorities. Prolonged project timelines often dilute the value of external financing. The Central Bank and the Securities and Exchange Commission must now align to manage the capital inflow. The economic gamble depends entirely on private sector-led growth.