The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria despite growing public concerns over the country’s rising debt profile, while unveiling a new six-year partnership framework aimed at accelerating private sector-led economic growth and job creation.

The approval was announced on Wednesday following a meeting of the World Bank Board, which endorsed both the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing operation and a new Country Partnership Framework (CPF) covering 2026 to 2032.

The latest facility comes amid widespread criticism from many Nigerians over the government’s increasing reliance on external borrowing and calls for greater accountability in the utilisation of previous World Bank loans.

According to the World Bank, the $1.25 billion loan will support reforms designed to strengthen Nigeria’s economic competitiveness, improve the investment climate, and stimulate private sector-led growth.

The institution said the financing would help deepen Nigeria’s capital markets, modernise regulations governing the digital economy and e-governance, advance power sector reforms, reduce trade barriers under the ECOWAS and African Continental Free Trade Area (AfCFTA) frameworks, improve access to quality agricultural inputs, and strengthen domestic revenue mobilisation.

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

Alongside the loan approval, the World Bank launched its new Country Partnership Framework for Nigeria, which will guide its engagement with the country between 2026 and 2032.

Under the strategy, the bank aims to support programmes expected to provide electricity access to 32 million Nigerians, broadband connectivity to 58 million people, improved health and nutrition services for 40 million citizens, and increased agricultural productivity for 9.5 million farmers through better access to quality inputs.

The framework also seeks to strengthen human capital development while expanding investments in digital infrastructure and energy to stimulate economic growth.

World Bank Country Director for Nigeria, Mathew Verghis, said the new partnership framework would focus on creating sustainable employment by enabling private sector investment.

According to him, recent macroeconomic reforms have helped stabilise Nigeria’s economy, but sustained improvements in living standards would require addressing structural constraints limiting business growth and investment.

The World Bank also disclosed that its private sector financing arm, the International Finance Corporation, and its political risk insurance agency, Multilateral Investment Guarantee Agency, would play key roles in mobilising private investment under the new framework.

IFC Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s long-term economic prospects depend on its ability to attract investment, improve productivity and unlock private sector job creation.

Similarly, MIGA Vice President and Chief Financial Officer, Ed Mountfield, said the agency would expand the use of guarantees and political risk insurance to encourage investments in critical sectors, including infrastructure and financial services.

The newly approved facility is the second-largest World Bank loan granted to Nigeria under the administration of Bola Ahmed Tinubu, following the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.

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Tony Elumelu, Chairman of Heirs Holdings, United Bank for Africa (UBA), and Transcorp Group, has urged African governments to prioritise policy consistency and transparency to restore investor confidence and unlock the continent’s full economic potential. He warned that frequent policy changes and weak governance structures continue to discourage both local and foreign investors.

Speaking at the 2025 Abuja Business and Investment Summit and Expo, Elumelu said Africa holds vast potential but faces persistent challenges like policy instability, poor infrastructure, limited financing, and weak governance.

“No investor will commit where the rules keep changing,” he said. “Trust is the currency of investment, and policy stability converts trust into capital.”

He emphasized that Africa’s transformation must be driven by Africans through local investment rather than reliance on foreign aid or external agendas.

Elumelu noted that while the private sector contributes over 70% of Africa’s GDP and employs more than 80% of its workforce, governments often fail to provide an enabling business environment. He cited sectors such as energy and infrastructure where inconsistent regulations have discouraged private capital.

Highlighting his group’s contributions including Transcorp Hilton Abuja, the new Transcorp Event Centre, and the Abuja Electricity Distribution Company, he said these successes show what private investment can achieve when policies are clear and supportive.

Elumelu urged a new partnership between governments, businesses, and citizens built on trust and accountability. He called for greater collaboration in digital infrastructure, agriculture, renewable energy, and manufacturing through public-private partnerships to drive inclusive growth.

He also stressed the need to strengthen Africa’s financial systems and promote fintech innovations that expand access to credit for small and medium enterprises (SMEs), which he described as the “backbone of Africa’s economies.”

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The Federal Government has introduced new reforms to boost private sector investment in Nigeria’s agriculture and improve food security across the Sahel region.

Speaking at the FAO Hand-in-Hand Sahel Regional Initiative in Rome, Minister of Agriculture and Food Security, Senator Abubakar Kyari, outlined measures designed to attract sustainable investments and accelerate agrifood transformation.

He said the National Agrifood System Investment Plan (NASIP) is being upgraded into a National Public–Private Investment Portal, a digital platform showcasing opportunities in mechanization, irrigation, storage, logistics, and digital agrifood services.

Kyari also announced new investment incentives, including targeted tax and import duty reliefs, as well as risk-sharing facilities in collaboration with international development partners.

The government is expanding the Special Agro-Industrial Processing Zones (SAPZ) from eight to 27 states to reduce operational costs for agro-processors. Additionally, the Nigeria Postharvest Systems Transformation Programme (NiPHaST) aims to reduce the N3.5 trillion lost annually to postharvest inefficiencies through better storage and cold chain systems.

Kyari emphasized the need for strong institutions, innovative financing, and effective governance to drive agricultural growth. He reaffirmed that the Tinubu administration is committed to creating a stable environment for both local and foreign investors through partnerships with FAO, AfDB, IFAD, and other agencies.

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