The World Bank has fixed December 16 as the tentative date for the approval of Nigeria’s $1 billion Development Policy Financing (DPF) under the Nigeria Actions for Investment and Jobs Acceleration programme.
According to a project document published by the bank last week, the facility comprises a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan.
The proposed financing, which falls under the bank’s Macroeconomics, trade and investment practice for the Western and Central Africa region, is aimed at supporting ongoing economic reforms, boosting private investment, and creating jobs in Africa’s largest economy.
The document noted that the operation seeks to consolidate Nigeria’s post-reform stability and promote inclusive growth across key sectors. Implementation will be coordinated through the Federal Ministry of Finance, with the World Bank approving the preparation process to proceed.
Since 2023, Nigeria has embarked on sweeping reforms, including the removal of petrol subsidy, the unification of exchange rates, and the termination of Central Bank deficit financing. The Federal Government maintains that these measures, championed under President Bola Tinubu’s Renewed Hope Agenda, have stabilised the economy, narrowed fiscal deficits and restored investor confidence.
Despite the gains, the country continues to face sluggish economic growth, with more than 130 million Nigerians still living in poverty. The World Bank, while acknowledging the progress made so far, observed that the economy “has yet to shift decisively into a higher and inclusive growth path”.
It emphasised the need for new investments to boost productivity, diversify exports, and create employment.The proposed DPF focuses on two key pillars — unlocking private sector growth and reducing the cost of doing business — while expanding opportunities in agriculture, trade and digital services.
The first pillar aims to expand access to finance and promote digital inclusion. It will support the Investment and Securities Act 2025, introduce new credit enhancement facilities and back the Central Bank of Nigeria Rulebook to strengthen microfinance and non-bank financial institutions.
It also seeks to advance the National Digital Economy and e-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital record management. The second pillar targets cost reduction for businesses and households, addressing inflationary pressures and enhancing export competitiveness.
