The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria, unveiling the facility alongside a new six-year Country Partnership Framework designed to drive private sector-led growth, create jobs, and strengthen the country’s economy.
The approval comes despite growing public criticism over Nigeria’s rising debt profile. In recent days, many Nigerians have questioned the country’s continued reliance on external borrowing, with calls for greater transparency and accountability regarding how previous World Bank loans have been utilised.
According to the World Bank, the new financing is part of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme, which is aimed at supporting reforms that improve the business environment, attract private investment, and generate employment opportunities.
The lender explained that the $1.25 billion facility will help strengthen the foundations for economic growth by improving Nigeria’s competitiveness and encouraging greater participation from the private sector.
The programme will support reforms across several key sectors, including capital market development, digital economy regulations, e-governance, electricity, agriculture, trade, and domestic revenue mobilisation.
Among the planned reforms are measures to deepen Nigeria’s capital markets, modernise regulations for the digital economy, advance power sector reforms, reduce trade barriers under Nigeria’s commitments to the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improve farmers’ access to quality seeds, and strengthen tax revenue collection.
For micro, small and medium-sized enterprises (MSMEs), these reforms could improve access to financing, create a more stable electricity supply, expand digital services, simplify cross-border trade opportunities, and improve agricultural productivity for businesses operating within the agribusiness value chain.
The World Bank said the financing forms part of a broader support package that combines policy-based lending with investments in energy, digital infrastructure, agriculture, private sector development, and social protection. The overall objective is to create jobs, strengthen economic resilience, reduce poverty, and encourage more private sector participation in Nigeria’s economy.
Alongside the loan approval, the World Bank also endorsed a new Country Partnership Framework (CPF) covering 2026 to 2032. The six-year strategy is expected to support Nigeria’s long-term economic transformation by removing structural barriers that have slowed business growth and investment.
Under the framework, the World Bank 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 through increased agricultural productivity and better access to quality farming inputs.
The institution noted that the framework builds on recent macroeconomic improvements, including stronger economic growth, higher government revenues, increased foreign exchange reserves, and improved investor confidence following recent economic reforms.
The World Bank’s Country Director for Nigeria said the new partnership would focus on helping Nigeria create more and better jobs by enabling stronger private sector growth. He noted that while recent macroeconomic reforms have helped stabilise the economy, further structural reforms are needed to translate those gains into improved living standards for Nigerians.
The World Bank Group also confirmed that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will play significant roles in attracting private investment under the new framework.
The IFC said Nigeria’s long-term economic growth will depend on its ability to attract investment, improve productivity, and create more private sector jobs. It added that the partnership would help expand infrastructure, improve access to essential services, and create an environment where businesses can innovate and compete more effectively.
MIGA also stated that although Nigeria’s ongoing reforms are creating new investment opportunities, investors continue to face significant risks. The agency said it would expand the use of guarantees and political risk insurance to encourage greater investment, particularly in infrastructure and financial services.
The newly approved facility follows the Federal Government’s earlier engagement with the World Bank for financing to support reforms in taxation, trade, agriculture, electricity, digital services, and financial inclusion.
It is also the second-largest single World Bank loan approved for Nigeria under President Bola Tinubu’s administration, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.