World Bank approves $1.25 billion for Nigeria’s reform support

The World Bank Group has approved a $1.25 billion financing package to support Nigeria’s economic reforms as part of a new seven-year partnership that aims to expand broadband access to 58 million people, improve health and nutrition services for 40 million Nigerians, provide electricity access to 32 million people, and support 9.5 million farmers across the country.

The support is contained in the World Bank Group’s new Country Partnership Framework (CPF) for 2026–2032, which was approved alongside the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) operation.

According to the World Bank, the new partnership is designed to help Nigeria create more and better jobs by encouraging private sector investment and building on the country’s recent economic reforms.

The institution said recent policy changes have led to stronger economic growth, higher government revenues, improved foreign reserves and increased investor confidence. It noted, however, that sustaining these gains would require reforms that make it easier for businesses to invest, expand and employ more Nigerians.

Speaking on the new framework, the World Bank Country Director for Nigeria, Mathew Verghis, said the strategy would guide the institution’s support for Nigeria over the next several years.

“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 said.

Verghis added that while recent macroeconomic reforms had helped 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.”

The World Bank said the $1.25 billion NAIJA financing would support government reforms aimed at strengthening economic growth and improving competitiveness.

According to the institution, the reforms include developing Nigeria’s capital markets, updating regulations for the digital economy and electronic governance, advancing reforms in the power sector to speed up electrification, reducing trade barriers in line with the country’s commitments under the ECOWAS and African Continental Free Trade Area agreements, improving access to quality agricultural seeds and strengthening domestic revenue generation.

It explained that the financing forms part of a broader package of support covering investments in energy, digital infrastructure, agriculture, private sector development and social protection to promote job creation, economic resilience and poverty reduction.

The International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria has significant long-term growth prospects if it succeeds in attracting more investment and improving 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,” she said.
Khalifa added that under the new partnership, the World Bank Group would work with Nigeria to unlock private investment, expand access to infrastructure and essential services, and create an environment that allows businesses to innovate and compete.

She said the overall objective was to ensure that ongoing economic reforms translate into wider economic opportunities and improved living standards for Nigerians.

Also commenting, MIGA Vice President and Chief Financial Officer, Ed Mountfield, said although Nigeria’s reform programme was opening new investment opportunities, investors still faced risks that needed to be addressed.

“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.

Mountfield said the World Bank Group Guarantee Platform, managed by MIGA under the new partnership framework, would increase support for priority sectors including financial services and infrastructure to help attract investment, create jobs and stimulate economic growth.