-
Nigeria has opened fresh talks with the World Bank for a new $1 billion loan
-
Loan split between IDA credit and IBRD financing, pending December approval
-
World Bank backs reforms on credit, tariffs, agriculture, and digital economy
Nigeria has opened fresh talks with the World Bank for a new $1 billion loan under a programme designed to stimulate private investment, job creation, and economic diversification.
The facility, titled the Nigeria Actions for Investment and Jobs Acceleration (P512892), forms part of the Bank’s Development Policy Financing framework and is slated for board consideration on December 16, 2025.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
According to a concept note obtained by Nairametrics, the funding package will consist of $500 million International Development Association (IDA) credit and $500 million International Bank for Reconstruction and Development (IBRD) loan.
If approved, this will mark the second-largest loan Nigeria has secured under President Bola Tinubu, following the $1.5 billion RESET initiative granted in June 2024.
In a statement from the World Bank, the new initiative aims to shift Nigeria’s focus from short-term macroeconomic stabilisation to sustainable, private-sector-led growth. The programme targets reforms that expand access to credit, strengthen digital financial systems, and improve productivity across major agricultural value chains.
“The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation,” the document stated, outlining goals such as deepening capital markets, easing inflationary pressures, and promoting export diversification.
READ ALSO: Trump Lists Nigeria Among Nations Persecuting Christians
To strengthen domestic capacity, the loan will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and a Central Bank of Nigeria rulebook to improve consumer protection and risk-based regulation.
Digital transformation remains a central pillar of the plan, with provisions for the National Digital Economy and E-Governance Bill 2025, which seeks to formalise electronic transactions, authentication services, and data governance.
Beyond financial reforms, the World Bank recommends lowering production and living costs by addressing Nigeria’s restrictive trade system. It proposes AfCFTA tariff concessions, simplified import processes, and streamlined certification for key crops like maize, rice, and soybeans — measures expected to reduce food inflation and boost export capacity.
The $1 billion operation will run alongside three complementary World Bank initiatives: FINCLUDE, BRIDGE, and AGROW — all focused on inclusive finance, digital infrastructure, and sustainable agriculture.
The Bank projects that the reforms will create more jobs, lower the cost of living, and improve credit access for micro, small, and medium enterprises (MSMEs). Enhanced agricultural productivity is also expected to raise rural incomes and strengthen food security.
The report commended Nigeria’s recent reforms — including fuel subsidy removal, forex unification, and improved revenue administration — which it said have helped stabilise the economy and rebuild investor confidence.
Despite these gains, Nigeria’s growth remains modest, with per-capita income still below pre-2015 levels and over 130 million citizens living in poverty. The new facility is designed to bridge this gap by unlocking private-sector-led development.
As of June 2025, Nigeria’s external debt stood at $46.98 billion, with the World Bank Group accounting for $19.39 billion, representing 41.3% of the nation’s total debt stock — reinforcing its role as Nigeria’s largest creditor.
