World Bank approves $1.25 billion loan for Nigeria, unveils six-year growth strategy – THISAGE

By Ayo Kehinde

The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria as part of a new six-year Partnership Framework to accelerate private sector-led growth, create jobs and support major economic reforms.

The approval, announced on Wednesday, is part of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) program and is part of the World Bank’s Country Partnership Framework (CPF) for Nigeria, which covers the period 2026 to 2032.

According to the bank, the financing will support reforms to improve competitiveness, deepen capital markets, modernize regulations for the digital economy, strengthen energy sector reforms, expand agricultural productivity and improve domestic revenue mobilization. The program also aims to reduce trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area.

The approval follows public debate over Nigeria’s growing debt profile, with some Nigerians questioning the country’s continued reliance on external borrowing and calling for greater transparency in the use of previous World Bank loans.

In addition to financing, the World Bank said the new partnership framework aims to expand access to electricity to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers through increased agricultural productivity.

Mathew Verghis, World Bank country director for Nigeria, said recent macroeconomic reforms have helped stabilize the economy, but stressed that lasting improvements in living standards will depend on resolving structural constraints on private investment and job creation.

The World Bank Group added that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will support the strategy by mobilizing private capital, expanding infrastructure investments and providing guarantees to reduce investment risks.

The new framework reflects the World Bank’s continued focus on supporting Nigeria’s economic reforms, while encouraging greater private sector participation to stimulate long-term growth and reduce poverty.

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