The World Bank has scheduled December 16 as the tentative approval date for Nigeria’s request for a new $1 billion Development Policy Financing (DPF) facility under a fresh initiative titled “Nigeria Actions for Investment and Jobs Acceleration (P512892).”
According to a project document published by the Bank on October 27, the proposed package comprises a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan.
The programme, which falls under the Bank’s Macroeconomics, Trade, and Investment practice for the Western and Central Africa region, aims to support Nigeria’s ongoing economic reforms, boost job creation, and stimulate private investment.
Designed to build on post-reform stability, the facility is part of a broader World Bank support framework intended to help Nigeria transition from economic stabilisation to inclusive growth.
The Bank confirmed that loan preparation has been authorised, with implementation to be led by the Federal Ministry of Finance.
“The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation,” the document stated. “Structured as a two-tranche, standalone operation of US$1.0 billion (US$500m IDA credit and US$500m 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.”
Since 2023, Nigeria has embarked on sweeping economic reforms — including the removal of petrol subsidies, exchange rate unification, and the cessation of Central Bank deficit financing.
According to the Federal Government, these policies, introduced under President Bola Tinubu’s Renewed Hope Agenda, have helped stabilise the economy, reduce the fiscal deficit, and restore investor confidence.
Despite progress, however, growth remains subdued, with over 130 million Nigerians still living in poverty.
The World Bank noted that while macroeconomic stability has improved, “Nigeria’s economy has yet to shift decisively into a higher and more inclusive growth path,” underscoring the need for renewed investment to drive productivity, diversify exports, and expand employment opportunities.
The $1bn facility is anchored on two policy pillars — unlocking private-sector growth and reducing the cost of doing business — with a focus on agriculture, trade, and digital services.
Under the first pillar, the loan will support efforts to expand access to finance and digital inclusion through the Investment and Securities Act 2025, new credit enhancement mechanisms, and a Central Bank Rulebook to strengthen microfinance and non-bank financial institutions.
It will also back the proposed National Digital Economy and E-Governance Bill 2025, which aims to establish a legal framework for electronic transactions, authentication services, and digital records — key components of a modern, paperless government system.
