The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria, alongside a new six-year Country Partnership Framework (CPF) that will guide its engagement with Africa’s largest economy from 2026 to 2032.
The financing package, announced on Wednesday, comes despite public criticism over Nigeria’s rising debt burden and concerns about the country’s continued reliance on external borrowing.
The newly approved Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme is designed to support reforms aimed at stimulating private sector-led growth, improving competitiveness, and creating jobs.
“The World Bank Group has endorsed a new Country Partnership Framework for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth,” the institution said in a statement.
Reform Agenda Targets Investment and Competitiveness
According to the World Bank, the $1.25 billion financing will support reforms across key sectors of the economy, including capital markets, digital infrastructure, electricity, agriculture, taxation, and trade.
The programme will help deepen Nigeria’s capital markets, modernise regulations governing the digital economy and e-governance, advance power sector reforms, reduce trade barriers under ECOWAS and the African Continental Free Trade Area (AfCFTA), improve farmers’ access to quality seeds, and strengthen domestic revenue mobilisation.
The loan forms part of a broader World Bank support package that combines policy-based financing with investments in energy, agriculture, digital infrastructure, social protection, and private sector development.
Six-Year Partnership Focuses on Jobs and Infrastructure
The new Country Partnership Framework outlines ambitious development targets over the next six years.
The World Bank said it aims to:
Expand electricity access to 32 million Nigerians.
Deliver broadband connectivity to 58 million people.
Improve health and nutrition services for 40 million Nigerians.
Support 9.5 million farmers through increased agricultural productivity and access to improved inputs.
The framework seeks to strengthen human capital while expanding access to energy and digital infrastructure, with the objective of reducing poverty through sustainable private sector growth.
World Bank Sees Opportunity After Economic Reforms
World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms had helped stabilise the Nigerian economy but stressed that structural reforms remain essential for improving living standards.
“The recent macroeconomic gains have been critical to help stabilise 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 said.
The World Bank cited stronger economic growth, improved government revenues, higher foreign exchange reserves, and increased investor confidence as signs that Nigeria’s economic reforms are beginning to yield results.
IFC and MIGA to Mobilise Private Investment
The World Bank Group’s private sector institutions—the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)—will play central roles in attracting private capital under the new framework.
IFC Divisional Director for Nigeria Dahlia Khalifa said Nigeria’s long-term growth would depend on attracting investment, raising productivity, and creating jobs through private enterprise.
Meanwhile, MIGA Vice President and Chief Financial Officer Ed Mountfield said the agency would expand the use of political risk insurance and investment guarantees to encourage greater investment in infrastructure and financial services despite remaining investor concerns.
Public Concerns Over Nigeria’s Rising Debt
The approval comes shortly after Nigerians criticised the proposed borrowing on social media, raising questions about transparency, debt sustainability, and the utilisation of previous World Bank loans.
The newly approved facility is the second-largest World Bank loan secured by Nigeria under President Bola Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
