The World Bank has approved a $1.25 billion Development Policy Financing (DPF) facility for Nigeria while unveiling a new six-year partnership strategy aimed at accelerating private sector-led growth, creating jobs and supporting key economic reforms.
The approval, announced on Wednesday, comes despite growing public concern over Nigeria’s rising debt profile and calls for greater accountability in the use of previous multilateral loans.
The financing forms part of the World Bank’s new Country Partnership Framework (CPF) for Nigeria, covering the period from 2026 to 2032.
According to the World Bank, the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing operation will support reforms designed to strengthen economic competitiveness, attract private investment and create 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.
The Bank added that the $1.25 billion facility would help deepen Nigeria’s capital markets, modernise regulations for the digital economy and e-governance, advance power sector reforms, reduce trade barriers under the ECOWAS and African Continental Free Trade Area (AfCFTA) frameworks, improve access to quality agricultural seeds and strengthen domestic revenue mobilisation.
The financing is part of a broader support package combining policy-based lending with investments in energy, agriculture, digital infrastructure, social protection and private sector development.
Alongside the loan approval, the World Bank unveiled its new Country Partnership Framework, which will guide its engagement with Nigeria over the next six years.
The framework aims to stimulate private investment by addressing structural barriers to business growth while improving infrastructure and human capital.
Among its key targets are:
- Expanding electricity access to 32 million Nigerians
- Providing broadband connectivity to 58 million people
- Improving health and nutrition services for 40 million citizens
- Supporting 9.5 million farmers through improved productivity and access to quality inputs
The World Bank said the strategy builds on recent macroeconomic reforms that have strengthened economic growth, increased government revenues, boosted foreign exchange reserves and improved investor confidence.
Mathew Verghis, World Bank Country Director for Nigeria, said recent policy reforms have helped stabilise the economy but warned that sustained improvements in living standards would depend on tackling deeper structural constraints.
“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,” Verghis said.
He noted that translating macroeconomic gains into better living standards would require stronger private sector investment and sustained job creation.
The World Bank said its private-sector arms, 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 its ability to attract investment, improve productivity and unlock private sector job creation.
Similarly, Ed Mountfield, MIGA Vice President and Chief Financial Officer, said the agency would expand the use of guarantees and political risk insurance to encourage investment in sectors such as infrastructure and financial services.
According to him, while Nigeria’s ongoing reforms are creating new investment opportunities, risk mitigation remains essential to boosting investor confidence.
