The World Bank has approved a $1.25 billion Development Policy Financing loan for Nigeria as part of a broader strategy to accelerate private sector-led growth and create more employment opportunities.
The approval, announced on Wednesday, forms part of the new Country Partnership Framework (CPF) for Nigeria covering 2026 to 2032. The framework outlines the Bank’s long-term support plan for Africa’s largest economy, focusing on addressing structural barriers that have limited business expansion and job creation.
Key Focus Areas
The loan will back government reforms aimed at strengthening capital markets, modernising digital economy regulations, advancing power sector improvements, reducing trade barriers under AfCFTA and ECOWAS commitments, enhancing agricultural productivity, and boosting domestic revenue mobilisation.
The six-year partnership also targets ambitious outcomes, including expanding electricity access to 32 million Nigerians, providing broadband connectivity to 58 million people, improving health and nutrition services for 40 million citizens, and supporting 9.5 million farmers with better inputs and higher productivity.
World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms have helped stabilise the economy, but deeper structural changes are needed to improve living standards.
Private Sector Arms to Mobilise Capital
The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will play key roles in attracting private investment. IFC Divisional Director Dahlia Khalifa noted that Nigeria’s long-term growth will depend on its ability to draw investment and unleash private sector job creation.
MIGA Vice President Ed Mountfield acknowledged that while Nigeria’s reform agenda is creating new opportunities, risks for investors remain, and the framework aims to help mitigate them.
The approval has drawn mixed reactions, with some Nigerians expressing concern over the country’s rising debt burden. However, the World Bank maintains that the financing is part of a comprehensive package combining policy support with investments in energy, digital infrastructure, agriculture, private sector development, and social protection.
The new Country Partnership Framework signals a continued commitment by the World Bank to support Nigeria’s economic transformation, with a strong emphasis on private investment, job creation, and improved access to essential services over the next six years.
