The Federal Executive Council (FEC) has approved a $1.25 billion financing facility to support economic reforms aimed at stimulating private sector investment, strengthening competitiveness and accelerating job creation in Nigeria.
The facility is being provided under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme of the World Bank.
The World Bank approved the $1.25 billion facility in July 2026 as part of its new Country Partnership Framework for Nigeria covering 2026 to 2032. The financing is designed to support reforms that will create conditions for increased private sector investment and more inclusive economic growth.
The facility will support reforms in key areas, including capital market development, digital economy regulation and e-governance, power sector development, trade facilitation, agricultural productivity and domestic revenue mobilisation.
The World Bank said the financing forms part of a broader strategy to address structural constraints to private investment, improve productivity and create more and better jobs.
Under the 2026–2032 Country Partnership Framework, the World Bank also plans to support expanded electricity access for about 32 million Nigerians, broadband connectivity for 58 million people and improved health and nutrition services for 40 million citizens. The framework also targets support for 9.5 million farmers through improved agricultural productivity and access to quality inputs.
The World Bank Country Director for Nigeria, Mathew Verghis, said the partnership would focus on translating recent macroeconomic improvements into broader employment opportunities by enabling private sector-led growth.
He said Nigeria’s recent economic reforms had helped stabilise the macroeconomic environment, but added that addressing structural constraints remained necessary to unlock greater private investment and job creation.
The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both members of the World Bank Group, are expected to play key roles in mobilising private investment under the new framework.
The IFC’s Divisional Director for Nigeria, Dahlia Khalifa, said Nigeria’s long-term growth prospects would depend on its ability to attract investment, raise productivity and expand private-sector employment.
The approval makes the $1.25 billion facility the second-largest single World Bank financing secured by Nigeria under President Bola Tinubu’s administration, after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The facility, however, comes amid ongoing concerns over Nigeria’s rising debt profile and calls for greater scrutiny of additional external borrowing.
The Federal Government had earlier engaged the World Bank over the financing, which was intended to support economic reforms, job creation and competitiveness. The proposal subsequently advanced through the lender’s approval process before the World Bank’s final approval in July.
The Federal Government is expected to implement the supported reforms in line with the objectives of strengthening the investment climate, promoting private-sector-led growth and expanding employment opportunities.
The financing is therefore expected to form part of the broader economic reform agenda aimed at moving Nigeria towards stronger investment, higher productivity and more sustainable job creation.
COURTESY: crimefocusnews.com
