The World Bank has set December 16 as the tentative date for approving a $1 billion Development Policy Financing for Nigeria. This funding, split equally between an IDA credit and an IBRD loan, aims to support economic reforms and job creation. It comes amid ongoing efforts to stabilize the economy under President Bola Tinubu’s agenda.
The World Bank’s proposed $1 billion Development Policy Financing (DPF) falls under the Nigeria Actions for Investment and Jobs Acceleration programme. According to a project document published last week, the facility includes a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan. It targets the bank’s Macroeconomics, trade and investment practice for the Western and Central Africa region.
The financing seeks to support Nigeria’s ongoing economic reforms, boost private investment, and create jobs in Africa’s largest economy. It aims to consolidate 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.
Since 2023, Nigeria has pursued sweeping reforms, including the removal of the petrol subsidy, unification of exchange rates, and termination of Central Bank deficit financing. The Federal Government states these measures, under President Bola Tinubu’s Renewed Hope Agenda, have stabilized the economy, narrowed fiscal deficits, and restored investor confidence.
Despite these gains, Nigeria faces sluggish economic growth, with more than 130 million people living in poverty. The World Bank notes that the economy “has yet to shift decisively into a higher and inclusive growth path”. It emphasizes the need for new investments to boost productivity, diversify exports, and create employment.
The DPF focuses on two pillars: unlocking private sector growth and reducing the cost of doing business, while expanding opportunities in agriculture, trade, and digital services. The first pillar will expand access to finance and promote digital inclusion, supporting the Investment and Securities Act 2025, new credit enhancement facilities, and the Central Bank of Nigeria Rulebook for microfinance and non-bank institutions. It also advances the National Digital Economy and e-Governance Bill 2025 for electronic transactions, authentication, and digital records. The second pillar addresses cost reductions for businesses and households, tackling inflation and enhancing export competitiveness.