World Bank to approve Nigeria’s $1b devt loan in December
The World Bank has set December 16 as the provisional date for the endorsement of Nigeria’s $1 billion Development Policy Financing (DPF) as part of the Nigeria Actions for Investment and Jobs Acceleration programme.
As per a project document released by the bank last week, the funding consists of a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan.
This proposed financing, which is categorized under the bank’s Macroeconomics, trade and investment practice for the Western and Central Africa region, aims to support ongoing economic reforms, enhance private investment, and generate employment in Africa’s largest economy.
The document indicated that the initiative seeks to solidify Nigeria’s post-reform stability and foster inclusive growth across essential sectors. The implementation will be managed through the Federal Ministry of Finance, with the World Bank granting approval for the preparation process to advance.
Since 2023, Nigeria has initiated extensive reforms, including the elimination of the petrol subsidy, the unification of exchange rates, and the cessation of Central Bank deficit financing. The Federal Government asserts that these actions, promoted under President Bola Tinubu’s Renewed Hope Agenda, have stabilized the economy, reduced fiscal deficits, and restored investor confidence.
Despite these advancements, the nation continues to experience sluggish economic growth, with over 130 million Nigerians still living in poverty. The World Bank, while recognizing the progress achieved thus far, noted that the economy “has yet to shift decisively into a higher and inclusive growth path.”
It highlighted the necessity for fresh investments to enhance productivity, diversify exports, and generate employment. The proposed DPF centers on two primary pillars — facilitating private sector growth and lowering the cost of doing business — while broadening opportunities in agriculture, trade, and digital services.
The first pillar is designed to increase access to finance and foster digital inclusion. It will support the Investment and Securities Act 2025, introduce new credit enhancement mechanisms, and endorse the Central Bank of Nigeria Rulebook to fortify microfinance and non-bank financial institutions.
Additionally, it aims to promote the National Digital Economy and e-Governance Bill 2025, which will create a legal framework for electronic transactions, authentication services, and digital record management. The second pillar focuses on reducing costs for businesses and households, tackling inflationary pressures, and improving export competitiveness.
