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The World Bank has approved $1.25 billion in development financing for Nigeria to support reforms aimed at accelerating economic growth, creating jobs, and strengthening private sector-led investment.
The approval was announced on Wednesday alongside the endorsement of a new Country Partnership Framework (CPF) for Nigeria covering 2026 to 2032, according to Bloomberg.
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The framework outlines the lender’s strategy for supporting Africa’s largest economy over the next six years.
The financing will support reforms designed to deepen Nigeria’s capital markets, modernise the regulatory framework for the digital economy and e-governance, expand energy access, and strengthen the country’s investment climate.
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“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,” the World Bank said.
The lender said the $1.25 billion NAIJA Development Policy Financing (DPF) operation would support a package of government reforms to improve growth and competitiveness.
“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 bank said.
According to the global financial institution, the programme will support reforms to deepen Nigeria’s capital markets, modernise regulations for the digital economy and e-governance, and advance power sector reforms.
The programme will also reduce trade barriers in line with the country’s commitments 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.
The financing forms part of the World Bank Group’s broader support package for Nigeria, combining policy-based lending with investments in energy, digital infrastructure, agriculture, private-sector development, and social protection.
Six-year partnership
Alongside the financing approval, the World Bank endorsed a new Country Partnership Framework for Nigeria spanning 2026 to 2032, with a strategy focused on expanding private investment and creating jobs by addressing structural constraints limiting business growth.
Under the framework, the bank aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, and improve health and nutrition services for 40 million citizens.
It said it will support 9.5 million farmers by increasing agricultural productivity and improving access to quality agricultural inputs.
The programme 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, increased government revenues, higher foreign exchange reserves, and improved investor confidence following recent policy reforms.
The World Bank Country Director for Nigeria, Mathew Verghis, said the partnership would focus on translating recent economic reforms into broader employment opportunities.
“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,” Mr Verghis said.
He added that while recent reforms had helped stabilise the economy, more work was needed to address long-standing structural challenges.
“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,” the World Bank Country Director said.
Investment mobilisation
The lender said its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), would play key roles in mobilising private investment under the new framework.
The IFC Divisional Director for Nigeria, Dahlia Khalifa, said sustained economic growth would depend on Nigeria’s 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,” Ms Khalifa said.
According to the divisional director, the framework is expected to help unlock private investment, expand infrastructure, and improve access to essential services while creating conditions for businesses to innovate and compete.
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Similarly, MIGA Vice President and Chief Financial Officer, Ed Mountfield, said Nigeria’s reform agenda was creating fresh opportunities for investors despite lingering risks.
“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,” Mr Mountfield said.
The World Bank said the overall support package is intended to create jobs, strengthen economic resilience, and reduce poverty by encouraging greater private sector participation in the Nigerian economy.
The latest loan approval is the second-largest single World Bank facility secured by the administration of President Bola Tinubu, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
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