World Bank approves $1.25bn Nigeria loan to drive reforms, private sector growth
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The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria despite growing public concerns over the country’s rising debt profile, unveiling a new six-year partnership strategy aimed at accelerating private sector-led growth, job creation and economic transformation.
The lender announced on Wednesday that its Board had approved the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing operation as part of a broader Country Partnership Framework (CPF) for 2026–2032, which is designed to support reforms that strengthen investment, improve competitiveness and stimulate sustainable economic growth.
The approval comes amid increasing public scrutiny over Nigeria’s growing external debt burden, with many Nigerians questioning the country’s continued reliance on foreign borrowing and calling for greater transparency and accountability in the utilisation of previous World Bank facilities.
In a statement, the World Bank said the new financing would support key government reforms aimed at strengthening the foundations for economic growth and improving the business environment.
“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,” the statement said.
It added that the $1.25 billion NAIJA operation would support 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 Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improve access to quality agricultural seeds and strengthen domestic revenue mobilisation.
According to the World Bank, the policy-based loan forms part of a broader support package combining financing with investments in energy, digital infrastructure, agriculture, private sector development and social protection to boost economic resilience, expand employment opportunities and reduce poverty.
Under the new 2026–2032 Country Partnership Framework, the World Bank plans to support Nigeria in expanding electricity access to 32 million people, providing broadband connectivity to 58 million Nigerians, improving health and nutrition services for 40 million citizens, and enhancing agricultural productivity for 9.5 million farmers through improved access to quality inputs and modern farming practices.
The framework also prioritises human capital development while expanding access to critical infrastructure needed to stimulate investment and economic diversification.
World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms had helped stabilise the economy but noted that sustaining the gains would require deeper structural reforms.
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