The World Bank has tentatively scheduled December 16, 2025, as the approval date for Nigeria’s fresh $1 billion Development Policy Financing (DPF) loan, introduced under a new framework titled “Nigeria Actions for Investment and Jobs Acceleration (P512892).”
According to the Bank’s official project brief released on October 27, the funding package will include a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan.
This latest intervention falls within the World Bank’s Macroeconomics, Trade, and Investment agenda for Western and Central Africa and is designed to deepen ongoing economic reforms, stimulate private sector participation, and accelerate job creation across key sectors.
The initiative aims to consolidate the federal government’s post-reform gains and facilitate a transition from short-term economic stabilization to long-term inclusive growth. The Federal Ministry of Finance will oversee the loan’s execution, following the Bank’s authorization to proceed with preparation.
“The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation,” the Bank noted. “It seeks to catalyse private sector investment by expanding access to finance, deepening digital and capital markets, reducing inflationary pressures, and boosting export diversification.”
Since 2023, Nigeria has rolled out several reform measures, including the removal of fuel subsidies, exchange rate unification, and the halt of central bank deficit financing. The Tinubu-led administration, through its Renewed Hope Agenda, maintains that these policies have narrowed fiscal deficits, stabilized macroeconomic indicators, and improved investor sentiment.
However, challenges persist, with more than 130 million Nigerians still living below the poverty line, despite modest improvements in macroeconomic stability. The World Bank highlighted that Nigeria’s economy “has yet to transition to a high-growth, inclusive trajectory,” emphasizing the urgent need for private investment to drive productivity and job creation.
The $1bn policy loan will rest on two main pillars: promoting private sector expansion and reducing operational costs for businesses. Under the first pillar, the programme will enhance access to credit and strengthen digital inclusion through initiatives such as the Investment and Securities Act 2025, new credit guarantee frameworks, and a CBN Rulebook for microfinance and non-bank institutions.
Additionally, it will support the National Digital Economy and E-Governance Bill 2025, which will formalize electronic authentication, digital records, and e-transaction frameworks—paving the way for a paperless, technology-driven government.
The second pillar targets inflation management, improved export competitiveness, and cost reductions for firms and consumers. The programme will also simplify trade processes, implement AfCFTA tariff concessions, and enhance certified seed systems for major crops like rice, maize, and soybeans to boost food production and agricultural investments.
This DPF is part of a broader FY2026 World Bank engagement package supporting Nigeria’s development agenda, which includes complementary programmes such as FINCLUDE (MSME finance expansion), BRIDGE (digital infrastructure), and AGROW (agricultural value chain development).
The Bank stated that the policy package aligns with the Paris Climate Agreement, promoting climate-smart agriculture, reduced deforestation, and digital systems that lower carbon emissions.
Expected outcomes include reduced food inflation, improved credit access for MSMEs, and increased digital exports, collectively generating millions of new jobs. Furthermore, import liberalization and tariff reductions on key inputs are projected to enhance consumer welfare and Nigeria’s competitiveness within the African market.
Once approved, the funds will be disbursed in two tranches, subject to policy milestones, with implementation overseen by the Federal Ministry of Finance, Central Bank of Nigeria (CBN), and related agencies.
The initiative could represent one of the largest policy financing operations in Nigeria’s recent history, reinforcing its transition toward private-sector-driven, inclusive economic growth.
As of June 30, 2025, Nigeria’s external debt stood at $46.98 billion, with the World Bank Group accounting for $19.39 billion, representing 41.3% of total foreign obligations.
 loan, introduced under a new framework titled “Nigeria Actions for Investment and Jobs Acceleration (P512892).”){kind=link}