By Boluwatife Oshadiya| July 2, 2026
Key Points
- The World Bank has approved a $1.25 billion Development Policy Financing loan to support Nigeria’s economic reforms and private sector growth
- The financing comes despite growing public criticism over Nigeria’s rising external debt and concerns about accountability for previous loans
- The lender also unveiled a new 2026–2032 Country Partnership Framework focused on job creation, infrastructure and private sector-led economic growth
Main Story
The World Bank has approved a $1.25 billion Development Policy Financing (DPF) facility for Nigeria, moving ahead with the funding despite mounting public criticism over the country’s growing debt burden and concerns about transparency in the use of previous loans.
The approval forms part of the World Bank’s newly endorsed Country Partnership Framework (CPF) for 2026–2032, a six-year strategy designed to accelerate private sector-led growth, expand employment opportunities and strengthen Nigeria’s economic resilience through targeted reforms and strategic investments.
According to the World Bank, the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme will support reforms aimed at improving the business environment, deepening capital markets, modernising digital economy regulations, advancing power sector reforms, reducing trade barriers, improving access to quality agricultural inputs and strengthening domestic revenue mobilisation.
The lender said the operation complements broader investments in energy, digital infrastructure, agriculture, social protection and private sector development, with the goal of stimulating economic growth while reducing poverty.
“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 World Bank said in a statement announcing the approval.
The decision comes only days after many Nigerians questioned the proposed facility on social media, expressing concerns over the country’s increasing dependence on external borrowing and calling for greater accountability in the implementation of previous World Bank-funded programmes.
The new partnership framework also outlines ambitious development targets, 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 through increased agricultural productivity and improved access to quality farm inputs.
What’s Being Said
The World Bank said the new partnership seeks to translate recent macroeconomic reforms into sustainable economic growth driven by private sector investment.
“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,” said Mathew Verghis, World Bank Country Director for Nigeria.
Verghis added that while recent macroeconomic reforms have helped stabilise Nigeria’s economy, deeper structural reforms remain necessary.
“The recent macroeconomic gains have been critical to help stabilize the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation,” he said.
Meanwhile, Dahlia Khalifa, Divisional Director of the International Finance Corporation (IFC) for Nigeria, said attracting greater private investment would be critical to unlocking the country’s long-term growth potential, while Ed Mountfield, Vice President and Chief Financial Officer of the Multilateral Investment Guarantee Agency (MIGA), said the agency would expand guarantees and political risk insurance to encourage investment in key sectors, including infrastructure and financial services.
What’s Next
- The Federal Government is expected to begin implementing the policy reforms tied to the loan as part of the agreed Development Policy Financing programme.
- The World Bank, IFC and MIGA will work alongside Nigerian authorities to mobilise private capital and accelerate investments in energy, agriculture, digital infrastructure and financial services.
- Investors and development partners will closely monitor the implementation of the reforms and assess whether the programme delivers measurable improvements in job creation, investment inflows and economic competitiveness.
Bottom Line:
The World Bank’s latest approval underscores continued international support for Nigeria’s reform agenda, but it also places greater pressure on the Federal Government to demonstrate that new borrowing translates into tangible economic gains. As public scrutiny over Nigeria’s debt profile intensifies, the success of the programme will ultimately be judged by its ability to create jobs, attract private investment and improve living standards rather than simply expand access to external financing.
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