The World Bank has approved $1.25 billion for Nigeria to help with reforms that aim to speed up economic growth, create jobs, and boost private investment.
This approval was shared on Wednesday along with a new Country Partnership Framework (CPF) for Nigeria that will run from 2026 to 2032, according to Bloomberg.
The framework lays out the bank’s plan to support Nigeria, Africa’s largest economy, for the next six years.
The funding will back reforms to improve Nigeria’s capital markets, update rules for the digital economy and e-governance, increase energy access, and improve the investment climate.
"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 bank noted that the $1.25 billion NAIJA Development Policy Financing (DPF) operation will aid a series of government reforms to boost 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 added.
The global financial institution explained that the program will help improve Nigeria’s capital markets, modernise digital economy regulations, and push for power sector reforms.
It will also remove trade barriers in line with Nigeria’s commitments to the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), improve access to quality agricultural seeds, and enhance domestic revenue collection.
New Partnership for Six Years
With the financing approval, the World Bank backed a new Country Partnership Framework for Nigeria from 2026 to 2032, focusing on increasing private investment and creating jobs by tackling issues that limit business growth.
Under this plan, the bank aims to provide electricity access to 32 million Nigerians, offer broadband to 58 million people, and enhance health and nutrition services for 40 million citizens.
The plan will also support 9.5 million farmers by boosting agricultural productivity and improving access to quality agricultural inputs.
The program aims to build human capital while improving energy and digital infrastructure access.
The World Bank stated that the framework builds on recent improvements in Nigeria’s economy, including better economic growth, higher government revenues, increased foreign exchange reserves, and improved investor confidence due to recent policy changes.
Mathew Verghis, the World Bank Country Director for Nigeria, said the partnership would focus on turning recent economic reforms into more job 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 explained.
He added that while the recent reforms helped stabilise the economy, more work is needed to solve long-standing 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.
Mobilising Investment
The lender mentioned that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will be key in attracting private investment under the new framework.
Dahlia Khalifa, the IFC Divisional Director for Nigeria, said that sustained economic growth will depend on Nigeria attracting investment and improving 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 stated.
She also noted that the framework should help unlock private investment, improve infrastructure, and ensure access to essential services, creating an environment for businesses to innovate and compete.
Similarly, Ed Mountfield, MIGA Vice President and Chief Financial Officer, said Nigeria’s reform agenda is opening up new opportunities for investors despite ongoing 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 mentioned that the overall support package aims to create jobs, boost economic resilience, and reduce poverty by encouraging more private sector involvement in Nigeria's economy.
This latest loan approval is the second-largest single World Bank facility secured by President Bola Tinubu’s administration, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
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