World Bank Approves $1.25 Billion Financing for Nigeria, Launches 2026–2032 Partnership Framework

The World Bank has approved $1.25 billion in fresh development financing for Nigeria to support economic reforms aimed at accelerating growth, creating jobs and strengthening private sector investment.

The approval, announced on Wednesday, coincides with the endorsement of the bank's new Country Partnership Framework (CPF) for Nigeria covering 2026 to 2032, setting out its development strategy for Africa's largest economy over the next six years.

According to the World Bank, the financing will support reforms designed to deepen Nigeria's capital markets, modernise regulations for the digital economy and e-governance, expand energy access and improve the country's investment climate.

New Financing Package

The approved facility, known as the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) operation, is valued at $1.25 billion.

In a statement, the World Bank said the programme is intended to support Nigeria's transition towards a more inclusive economy driven by private sector growth.

"The World Bank Group has endorsed a new Country Partnership Framework (CPF) for Nigeria spanning 2026–2032, setting out a strategy to create more and better jobs at scale by unlocking private sector-led growth.

"As part of this broader support, the World Bank has also approved the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) operation, which supports Nigeria's transition toward a more inclusive growth model that spurs growth and creates jobs."

The bank said the financing would strengthen the foundations for growth and competitiveness by supporting key government reforms.

Focus Areas

The programme will support reforms across several strategic sectors, including:

Deepening Nigeria's capital markets

Modernising regulations governing the digital economy and e-governance

Advancing power sector reforms

Reducing trade barriers in line with Nigeria's commitments under ECOWAS and the African Continental Free Trade Area (AfCFTA)

Improving access to quality agricultural seeds

Strengthening domestic revenue mobilisation

The World Bank said the financing forms part of a broader package combining policy-based lending with investments in energy, agriculture, digital infrastructure, social protection and private sector development.

Six-year Partnership Framework

Alongside the financing approval, the World Bank unveiled its new 2026–2032 Country Partnership Framework, which prioritises private investment and job creation by addressing structural barriers to business growth.

Under the framework, the bank aims to:

Expand electricity access to 32 million Nigerians

Provide broadband connectivity to 58 million people

Improve health and nutrition services for 40 million Nigerians

Support 9.5 million farmers by increasing agricultural productivity and improving access to quality farm inputs

The strategy also seeks to strengthen human capital while expanding access to reliable energy and digital infrastructure.

World Bank Backs Ongoing Reforms

The World Bank said the framework builds on recent macroeconomic improvements in Nigeria, including stronger economic growth, increased government revenue, higher foreign exchange reserves and improving investor confidence following recent policy reforms.

World Bank Country Director for Nigeria, Mathew Verghis, said the priority is ensuring recent economic reforms translate into improved living standards through job creation.

"Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth."

He added that while recent reforms have helped stabilise the economy, deeper structural reforms remain necessary.

"The recent macroeconomic gains have been critical to help stabilise the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation."

Mobilising Private Investment

The World Bank said its private-sector institutions, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will play central roles in attracting investment under the new framework.

IFC Divisional Director for Nigeria, Dahlia Khalifa, said long-term growth depends on Nigeria's ability to attract investment and improve productivity.

"Nigeria's long-term growth potential will be shaped by the economy's ability to attract investment, raise productivity, and unleash private sector job creation, building on the capital of a rapidly growing population."

MIGA Vice President and Chief Financial Officer, Ed Mountfield, said Nigeria's ongoing reforms are creating fresh opportunities despite remaining investment risks.

"Nigeria's reform progress is creating important opportunities for private investment, but risks remain for investors. MIGA's role is to help manage these risks through guarantees and political risk insurance so that investors can step in with confidence."

One of Tinubu Administration's Biggest World Bank Facilities

The World Bank said the overall support package is designed to strengthen economic resilience, reduce poverty and encourage greater private sector participation in Nigeria's economy.

The $1.25 billion approval represents the second-largest single World Bank financing facility secured under President Bola Tinubu's administration, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.