Nigeria has begun discussions with the World Bank for a new $1 billion loan under a programme designed to accelerate private investment, job creation, and economic diversification.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note seen by Naijaonpoint on Friday, the financing will comprise $500 million in International Development Association (IDA) credit and $500 million in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it will be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth. The loan will back reforms intended to expand access to credit and digital financial services, lower prices for households and firms, and boost productivity in key agricultural value chains.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
According to the document, Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria will adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.
The World Bank expects the reforms supported by the loan to have a positive long-term impact on poverty reduction. By improving access to credit, particularly for micro, small, and medium-sized enterprises (MSMEs), and lowering tariffs on essential goods, the operation is expected to create more jobs and reduce the cost of living.
The Bank also noted that agricultural productivity gains from better seed quality would raise rural incomes and improve food security for low-income households.
The World Bank report credits Nigeria’s recent economic reforms—fuel subsidy removal, foreign-exchange unification, and improved revenue administration—with restoring macroeconomic stability after years of fiscal strain. It said these steps had narrowed deficits, boosted investor confidence, and improved reserves.
However, growth remains modest, with per-capita income still below pre-2015 levels and more than 130 million Nigerians living in poverty. The new $1 billion facility aims to bridge that gap by unlocking private-sector-driven growth and job creation.
However, growth remains modest, with per-capita income still below pre-2015 levels and more than 130 million Nigerians living in poverty. The new $1 billion facility aims to bridge that gap by unlocking private-sector-driven growth and job creation.
As of June 30, 2025, Nigeria’s total external debt stood at $46.98 billion, according to data from the Debt Management Office (DMO). Of this amount, the World Bank Group remains the country’s single largest creditor, holding a combined $19.39 billion—comprising $18.04 billion from the International Development Association (IDA) and $1.35 billion from the International Bank for Reconstruction and Development (IBRD). This represents 41.3% of Nigeria’s total external debt stock, showing the Bank’s dominant role in Nigeria’s external financing profile