A few weeks ago, around mid-May 2026, Nigerians heavily criticized the World Bank on social media, especially its Instagram page as it was reported that the World Bank planned to loan $1.25 billion to the Tinubu administration.
However, on July 1, 2026, the World Bank approves $1.25bn for Nigeria as part of its new Country Partnership Framework (CPF) for 2026–2032.
The funding is known as the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing which will be used to support private sector-led growth and job creation, deepen capital markets, modernize digital economy and e-governance regulations, expand energy access, and boost agriculture, infrastructure, and economic reforms.
Meanwhile, Nigerians complain about this loan that there is rising debt burden without visible benefits, there are allegations that borrowed funds were being mismanaged, looted, or used for political purposes rather than development, and there is frustration that ordinary citizens bear the repayment burden through taxes and hardship, while elite’s benefit.
What Was Actually Approved
The World Bank approved a $1.25 billion Development Policy Financing (DPF) package for Nigeria on July 1, 2026. This is one of the larger single facilities under the Tinubu administration which is second only to a previous $1.5 billion package.
It comes amidst Nigeria’s debt to the World Bank standing at approximately $19.89 billion at the end of 2025. This represents a significant portion of external debt.
What the Money Is Actually Meant to Fix
The World Bank said the framework targets expanding electricity access to 32 million Nigerians, broadband connectivity to 58 million people, improved health and nutrition services for 40 million citizens, and support for 9.5 million farmers through better agricultural inputs.
The six reform pillars behind the financing cover capital market deepening, digital economy modernisation, electricity sector reform, trade liberalisation under ECOWAS and AfCFTA, agricultural seed access, and domestic revenue mobilisation.
World Bank Country Director for Nigeria, Mathew Verghis, said “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.”
The Debt Numbers Nobody Can Ignore
According to Nigeria’s Debt Management Office, the country’s debt to the World Bank alone rose from $17.81 billion at the end of 2024 to $19.89 billion by December 2025 as the debt rate increase by $2.08 billion.
The World Bank now accounts for 38.36% of Nigeria’s total external debt of $51.86 billion. Aside this, public debt overall has climbed to $115.43 billion, with inflation having peaked above 30% following the 2023 fuel subsidy removal, even as the economy grew 3.4% in 2024.
However, this numbers matters because Nigeria’s tax-to-GDP ratio remains one of the lowest globally. This means a large chunk of government revenue goes to debt repayment rather than new spending. This is a core concern raised even by the World Bank.
Final Thoughts as World Bank Approves $1.25bn for Nigeria
Before the World Bank approves $1.25bn for Nigeria, there have been widespread criticism by Nigerians on social media over the country’s growing reliance on external borrowing while many were demanding greater accountability over how previous World Bank loans were spent.
The newly approved facility is the second-largest single World Bank loan secured by Nigeria since President Bola Ahmed Tinubu assumed office, behind the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing that was approved in June 2024.
Do you trust that this loan will translate into real improvements, or do you think it’s just more debt with the same old outcomes? Tell us what you think.
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