The World Bank has approved a $1.25 billion Development Policy Financing loan for Nigeria despite widespread public criticism over the country’s rising debt profile, as it unveiled a new six-year partnership strategy aimed at accelerating private sector-led growth and job creation.
The lender announced on Wednesday that its Board had approved the Nigeria Actions for Investment and Jobs Acceleration Development Policy Financing operation as part of a broader Country Partnership Framework covering 2026 to 2032.
The approval comes days after a number of Nigerians criticised the proposed facility on social media, questioning the country’s growing reliance on external borrowing and demanding greater accountability over previous World Bank loans.
The statement read, “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 create jobs.”
According to the World Bank, the $1.25 billion facility will support reforms designed to strengthen the foundations for economic growth, improve competitiveness and stimulate private sector investment.
The statement noted, “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 lender said the operation would back reforms to deepen Nigeria’s capital markets, modernise regulations for the digital economy and e-governance, advance power sector reforms, reduce trade barriers under the country’s commitments to the Economic Community of West African States and the African Continental Free Trade Area, improve access to quality agricultural seeds and strengthen domestic revenue mobilisation.
The financing forms part of the World Bank Group’s wider support package for Nigeria, combining policy-based lending with investments in energy, digital infrastructure, agriculture, private sector development and social protection.
The bank said the package is intended to help create jobs, strengthen economic resilience and reduce poverty by encouraging greater private sector participation in the economy.
