The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria, moving ahead with the facility despite widespread public concerns over the country’s growing debt burden.
The approval, announced on Wednesday, forms part of the World Bank’s new Country Partnership Framework (CPF) for Nigeria covering the 2026–2032 period. The framework is designed to support private sector-led economic growth, job creation and long-term development.
According to the World Bank, the financing—known as the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing operation—will back reforms aimed at strengthening economic competitiveness and encouraging greater private investment.
The institution said the programme will support reforms in key sectors, including capital market development, digital economy regulation, e-governance, electricity, trade, agriculture and domestic revenue mobilisation. It also seeks to improve access to quality agricultural seeds and deepen Nigeria’s participation in regional trade under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA).
The approval follows days of criticism from many Nigerians who questioned the Federal Government’s continued reliance on external borrowing, calling for greater transparency and accountability in the utilisation of previous World Bank loans.
Alongside the loan, the World Bank unveiled its six-year partnership strategy, which targets expanding electricity access to about 32 million Nigerians, broadband connectivity for 58 million people, improved health and nutrition services for 40 million citizens, and increased agricultural productivity for about 9.5 million farmers.
World Bank Country Director for Nigeria, Mathew Verghis, said the new partnership framework is focused on creating more and better jobs by enabling private sector-led growth. He acknowledged that while recent macroeconomic reforms have helped stabilise the economy, deeper structural reforms remain necessary to sustain progress.
The World Bank also noted that the strategy builds on recent improvements in Nigeria’s macroeconomic environment, including stronger economic growth, higher government revenues, improved foreign exchange reserves and increased investor confidence following recent economic reforms.
