TDThe World Bank is expected to decide today, Friday, June 26, on Nigeria’s request for a $1.25 billion Development Policy Financing facility under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Programme.
The proposed loan, requested by the Federal Ministry of Finance, has completed its appraisal and negotiation stages and is now before the World Bank’s Board of Executive Directors for final consideration.
Loan to Support Economic Reforms
According to available project documents, the facility is intended to support the Federal Government’s ongoing economic reform agenda by improving the investment climate and accelerating job creation.
The programme focuses on reforms across several sectors, including:
- Expanding access to investment and private sector financing.
- Improving electricity supply and power sector performance.
- Enhancing digital infrastructure and public services.
- Strengthening tax administration and revenue mobilisation.
- Boosting agricultural productivity and food security.
- Creating more employment opportunities through private sector-led growth.
If approved, the loan would rank among the largest World Bank financing packages secured by Nigeria under President Bola Tinubu’s administration.
Public Opposition Grows Over Fresh Borrowing
Ahead of the Board’s decision, many Nigerians recently took to the social media platforms of the World Bank and the International Monetary Fund (IMF), urging the institutions not to approve additional loans for the Tinubu administration.
The online campaign reflected growing concerns over Nigeria’s rising public debt.
Critics argue that the country should prioritise prudent management of existing resources rather than accumulating new external loans.
Supporters of the government’s reform programme, however, contend that the facility is tied to policy reforms aimed at strengthening the economy, attracting investment, and creating jobs.
Background
The proposed $1.25 billion facility follows previous World Bank support for Nigeria’s economic reform programme, including a $1.5 billion Development Policy Financing approved in 2024.
The outcome of today’s Board meeting will determine whether Nigeria secures the new financing package to support its ongoing reform agenda.
