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.
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 World Bank 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.