World Bank has approved a $1.25 billion Development Policy Financing loan for Nigeria despite widespread public criticism over the country’s rising debt profile, as it unveiled a new six-year partnership strategy aimed at accelerating private sector-led growth and job creation.
The lender announced yesterday that its Board had approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation as part of a broader Country Partnership Framework covering 2026 to 2032.
The approval comes days after a number of Nigerians criticised the proposed facility on social media, questioning the country’s growing reliance on external borrowing and demanding greater accountability over previous World Bank loans.
The statement read, “The World Bank Group has endorsed a new Country Partnership Framework ,CPF, for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector–led growth. As part of this broader support, the World Bank has also approved the Nigeria Actions for Investment and Jobs Acceleration ,NAIJA, Development Policy Financing ,DPF, operation, which supports Nigeria’s transition toward a more inclusive growth model that spurs growth and creates jobs.”
According to the World Bank, the $1.25 billion facility will support reforms designed to strengthen the foundations for economic growth, improve competitiveness and stimulate private sector investment.
The statement noted, “The NAIJA DPF operation, which amounts to $1.25 billion, supports a set of Government reforms to strengthen the foundations for growth and competitiveness.”
The lender said the operation would back reforms to deepen Nigeria’s capital markets, modernise regulations for the digital economy and e-governance, advance power sector reforms, reduce trade barriers under the country’s commitments to the Economic Community of West African States and the African Continental Free Trade Area, improve access to quality agricultural seeds and strengthen domestic revenue mobilisation.
The financing forms part of the World Bank Group’s wider support package for Nigeria, combining policy-based lending with investments in energy, digital infrastructure, agriculture, private sector development and social protection.
The bank said the package is intended to help create jobs, strengthen economic resilience and reduce poverty by encouraging greater private sector participation in the economy.
Alongside the loan approval, the World Bank endorsed a new Country Partnership Framework for Nigeria spanning 2026 to 2032, setting out its strategy for supporting Africa’s largest economy over the next six years.
The framework is built around expanding private investment and creating employment opportunities by addressing structural constraints that have limited business growth.
According to the bank, the programme 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 higher agricultural productivity and better access to quality inputs.
It also seeks to strengthen human capital while expanding access to energy and digital infrastructure.
The World Bank said the framework builds on recent macroeconomic improvements in Nigeria, including stronger economic growth, higher government revenues, increased foreign exchange reserves and improved investor confidence following recent policy reforms.
“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, particularly by enabling private sector-led growth,” said the World Bank Country Director for Nigeria, Mathew Verghis.
He said recent macroeconomic reforms had helped stabilise the economy but noted that sustaining the gains would require tackling deeper structural challenges.
“The recent macroeconomic gains have been critical to help stabilize the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” Verghis noted.
The World Bank Group said its private sector arms, the International Finance Corporation and the Multilateral Investment Guarantee Agency, would play key roles in mobilising private capital under the new partnership.
The IFC Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s long-term economic prospects would depend on its ability to attract investment and improve productivity.
“Nigeria’s long-term growth potential will be shaped by the economy’s ability to attract investment, raise productivity, and unleash private sector job creation building on the capital of a rapidly growing population,” she said.
According to her, the new framework will help unlock private investment, expand infrastructure and improve access to essential services while creating conditions for businesses to innovate and compete.
Similarly, MIGA Vice President and Chief Financial Officer, Ed Mountfield, said although Nigeria’s reform agenda was creating new investment opportunities, risks remained for investors.
He said MIGA would expand the use of guarantees and political risk insurance under the new framework to encourage greater investment in sectors such as infrastructure and financial services.
“Nigeria’s reform progress is creating important opportunities for private investment, but risks remain for investors. MIGA’s role is to help manage these risks through guarantees and political risk insurance so that investors can step in with confidence,” Mountfield said.
The Federal Government engaged the World Bank for a fresh $1.25 billion loan under a proposed programme aimed at expanding access to finance, digital services, electricity, and supporting reforms in tax, trade and agriculture.
The facility, titled Nigeria Actions for Investment and Jobs Acceleration, is listed as a Development Policy Financing operation, with the Federal Republic of Nigeria as borrower and the Federal Ministry of Finance as implementing agency.
The loan is the second-largest single World Bank loan approved for Nigeria under President Tinubu, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
