The World Bank has set a tentative approval date of 16 December for a new $1 billion Development Policy Financing (DPF) loan intended to support the Bola Tinubu-led administration’s economic reforms. The new initiative, tagged “Nigeria Actions for Investment and Jobs Acceleration (P512892),” is designed to strengthen ongoing economic reforms, accelerate private investment, and promote job creation.
According to a project document published by the World Bank on 27 October, the facility is structured as a two-tranche standalone operation, comprising a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan. The funding, which falls under the bank’s Macroeconomics, Trade and Investment practice area, is intended to help Nigeria consolidate its post-reform stability and transition from economic stabilisation to inclusive growth across key sectors.
The proposed DPF loan aims to catalyse private sector-led investment by expanding access to credit, deepening digital services and capital markets, easing inflationary pressures, and promoting export diversification. The facility is designed around two key policy pillars: unlocking private sector growth and reducing the cost of doing business. The Federal Ministry of Finance will implement the loan, and the World Bank has authorised the preparation process to proceed.
The Tinubu administration claims that its extensive economic reforms since 2023, which include the removal of the petrol subsidy, the unification of exchange rates, and an end to Central Bank deficit financing, have helped restore investor confidence and stabilise the economy. However, despite these measures, the World Bank noted in its report that while macroeconomic stability has returned, Nigeria’s economy “has yet to shift decisively into a higher and inclusive growth path,” underscoring the urgency for new investment to spur productivity. The report highlights that over 130 million Nigerians are still living in poverty, reflecting the subdued growth rate.
