The World Bank Group has approved a new $1.25 billion policy financing package for Nigeria, placing private sector-led growth at the centre of its six-year engagement with Africa’s third largest economy as it seeks to convert recent macroeconomic reforms into jobs, higher productivity and broader economic inclusion.
The financing, announced alongside the World Bank’s new Country Partnership Framework (CPF) for 2026–2032, signals a development from short-term macroeconomic stabilisation toward structural reforms aimed at attracting private capital, improving competitiveness and expanding employment opportunities.
The Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) operation will support reforms spanning capital market development, power sector liberalisation, digital economy regulation, agricultural productivity, trade facilitation and domestic revenue mobilisation.
The World Bank said the package builds on recent economic reforms that have strengthened growth, increased government revenues, boosted foreign exchange reserves and improved investor confidence, but warned that sustaining the momentum will require removing long-standing barriers to private investment.
“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,” said Mathew Verghis, the World Bank’s country director for Nigeria.
“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,” he added.
Unlike previous programmes that focused largely on fiscal stability and poverty reduction, the new framework prioritises investment-enabling reforms designed to unlock long-term private capital while improving access to infrastructure and essential services.
Over the life of the programme, the World Bank aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve healthcare and nutrition services for 40 million citizens, and support 9.5 million farmers through higher agricultural productivity and improved access to quality inputs.
The institution said these interventions are expected to strengthen human capital, reduce infrastructure deficits and improve the competitiveness of Nigerian businesses.
The $1.25 billion policy financing operation will underpin reforms intended to deepen Nigeria’s capital markets, modernise digital economy regulation and e-governance, accelerate electricity sector reforms, reduce trade barriers in line with ECOWAS and African Continental Free Trade Area commitments, improve access to certified agricultural seeds and strengthen domestic revenue generation.
The financing forms part of a broader World Bank Group strategy combining policy support with investments across energy, agriculture, digital infrastructure, financial markets and social protection.
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, said attracting significantly higher levels of private investment would determine whether Nigeria achieves sustained long-term growth.
“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. Through this Country Partnership Framework, the World Bank Group will work alongside Nigeria to help unlock private investment, expand access to infrastructure and essential services, and create the enabling conditions for businesses to innovate and compete,” said Dahlia Khalifa, IFC Divisional Director for Nigeria.
The Multilateral Investment Guarantee Agency (MIGA) also signalled plans to expand political risk insurance and investment guarantees to reduce investor concerns in strategic sectors.
According to Ed Mountfield, MIGA vice-president and chief financial officer, Nigeria’s ongoing reforms are creating new opportunities for investors, although risks remain.
“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,” he said.Â
Under the new framework, MIGA’s Guarantee Platform will increase support for infrastructure and financial sector investments, helping mobilise additional private capital into priority sectors.
