₦airaland Forum

The World Bank has fixed December 16 as a tentative approval date for a fresh $1bn Development Policy Financing loan to the country under a new initiative tagged “Nigeria Actions for Investment and Jobs Acceleration (P512892).”

According to a project document published by the bank on October 27, the new facility comprises a $500m International Development Association credit and a $500m International Bank for Reconstruction and Development loan.

The facility, which falls under the bannk’s Macroeconomics, Trade and Investment practice area for the Western and Central Africa region, is designed to strengthen ongoing economic reforms, promote job creation, and accelerate private investment.

The proposed loan is part of the bank’s broader support package aimed at consolidating the country’s post-reform stability and driving inclusive growth across key sectors of the economy.

The funding is designed to consolidate Nigeria’s ongoing macroeconomic reforms and support a decisive shift from economic stabilisation to inclusive growth.

It will be implemented through the Federal Ministry of Finance, with the World Bank confirming that the loan preparation process has been authorised to proceed.

“The proposed Development Policy Financing supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500m IDA credit and US$500m IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.

Since 2023, the country has embarked on many economic reforms, including the removal of the petrol subsidy, unification of exchange rates, and an end to central bank deficit financing.

According to the Federal Government, the measures, championed under President Bola Tinubu’s Renewed Hope Agenda, have helped stabilise the economy, narrow the fiscal deficit, and restore investor confidence.

But despite the improvements, growth remains sluggish, with more than 130 million Nigerians still living in poverty.

The World Bank report noted that while macroeconomic stability has returned, “Nigeria’s economy has yet to shift decisively into a higher and inclusive growth path,” underscoring the urgency of new investment to spur productivity, diversify exports, and create jobs.

The new policy loan is structured around two key pillars: unlocking private sector growth and lowering the cost of doing business, while expanding opportunities across agriculture, trade, and digital services.

Under the first pillar, the facility will expand access to financial credit and digital inclusion, with backing for the investment and Securities Act 2025, new credit enhancement facilities, and a CBN Rulebook aimed at improving microfinance and non-bank financial institutions.

It also supports the National Digital Economy and E-Governance Bill 2025, which will provide a legal framework for electronic transactions, authentication services, and digital records, key steps toward building a modern, paperless government system.

The second pillar seeks to lower costs for firms and households, reduce inflationary pressures, and enhance export competitiveness.

The bank’s report highlights plans to simplify trade barriers, adopt AfCFTA tariff concessions, and improve certified seed systems for key crops like rice, maize, and soybeans.

This is expected to raise productivity, boost food security, and attract new private investment into the agricultural value chain.

According to the document, the $1bn DPF loan forms part of a broader FY2026 package of World Bank interventions supporting Nigeria’s growth agenda.

Other complementary projects include FINCLUDE (to improve MSME financing), BRIDGE (digital infrastructure), and AGROW (agricultural value chain growth). Together, these are expected to crowd in private capital, expand access to finance, and create an enabling environment for small and medium-scale enterprises.

The programme is also aligned with the Paris Climate Agreement, with components targeting climate-resilient agriculture, reduced deforestation, and digital governance systems that lower emissions from paper-based processes.

The Bank estimates that the policy reforms supported under this operation will help reduce food inflation, increase seed productivity, and expand digital exports, while creating millions of direct and indirect jobs. It added that improved access to credit, particularly for MSMEs and smallholder farmers, will translate to “expanded economic opportunities by creating jobs, including for the poor.”

In addition, reduced import bans and lower tariffs on key inputs are expected to make goods cheaper and improve consumer welfare, while also boosting Nigeria’s competitiveness in regional markets.

Upon approval, the funds will be disbursed in two tranches as policy milestones are achieved, with implementation overseen by the Federal Ministry of Finance in collaboration with the Central Bank of Nigeria and relevant line ministries.

The initiative is expected to anchor Nigeria’s transition from short-term stabilisation to long-term, inclusive growth, potentially marking one of the largest World Bank policy support operations for the country in recent years.

As of June 30, 2025, the country’s external debt stood at $46.98bn, figures from the Debt Management Office show.

The World Bank Group remains the country’s largest single creditor, accounting for $19.39bn comprising $18.04bn from the IDA and $1.35bn from the IBRD.

This means the bank holds 41.3 per cent of Nigeria’s total external debt, underscoring its dominant role in financing the nation’s development programmes.

psalmsjob:
My reply to this; Emir Sanusi Cautions Tinubu: Continuous Borrowing After Subsidy Removal Is Wrong:



I didn't read the post just the headline and that's enough for me to know he's wrong about borrowing even after subsidy removal....

What is wrong is borrowing money to pay subsidy not the borrowing or being in debt when what you do with the money you borrow is what matters.

The rich always borrow money for big project even when they have their own money..... It's cheaper to borrow money for capital projects while we use igr to pay for recurrent expenditures.

Tinubu, God bless him is not borrowing money to make subsidy payments or sell our crude oil in advance to pay subsidy debt backlog like past presidents but he is borrowing to build project and using current oil money to settle both domestic and foreign debts.

It's simple economics to understand but it's not so simple to understand when you want to criticize for the sake of it or with bad belly.

It's not only the courage to remove subsidy that is required but to know what to do with the money saved or money gotten back.... Peter Obi lacks both courage or intellect to do both.

Peter obi's economics policy is to keep state money in a bank account where he has shareholdings.... Similar to what that servant who Jesus spoke parable about hiding his money in the ground until his master returns to give him the same money back. That's why he was shouting the amount of money he left behind after 8 years as if time wasted can be equated with the money he kept in the bank doing nothing with it a single nursery primary school he didn't build for 8 years in Anambra, road he did build but bought Jeep SUV for all Igwe in Anambra about 450 of them to buy or pay for their loyalty for his reelection.

Kewekubosineh:
Malali, Find out your source of information.

Your Take on US social policy is not correct.

Re-check and come back to Tell us the Truth. Not the lies bandied in the write up.

helinues:
Wondering why US is having trillion dollars debt

jogsman01:
Thought I read Admiral Ibas

No be only Ibas

The 16th Emir of Kano and former Central Bank of Nigeria (CBN) Governor, Muhammadu Sanusi II, has faulted President Bola Tinubu’s administration for resorting to massive borrowing despite the removal of petrol subsidy, a policy that was expected to boost government revenue.

Speaking in Abuja on Tuesday at the Oxford Global Think Tank Leadership Conference and Book Launch, Sanusi questioned the logic behind continuous borrowings when, according to him, “the government should have more fiscal space” after ending the costly fuel subsidy regime.

While commending the Tinubu administration for removing fuel subsidy and unifying Nigeria’s multiple exchange rates, measures he described as “painful but necessary”, the outspoken emir wondered why the fiscal discipline expected from such reforms has yet to reflect in national spending priorities.

He, however, cautioned that the reforms would fail unless matched with fiscal discipline and transparent spending.

“If you stop paying subsidies but continue borrowing more, it means you’ve filled one hole only to dig another. The real challenge now is the quality of government spending and the management of the revenues saved,” he said.

Sanusi, who served as CBN governor between 2009 and 2014, said Nigeria’s current economic woes were the consequence of years of policy inconsistency and populist politics.

“In 2012, we warned that the subsidy was unsustainable, but politics took over. Now, the same people who led protests against it have inherited the problem and had no choice but to do the right thing,” he said.

He applauded the professionalism of the current economic team for the steps taken to stabilise inflation and reduce exchange rate volatility, but insisted that government waste must be urgently curtailed.

Questioning the government expenditure, he asked: “Why do we need 48 ministers? Why do we need convoys of vehicles? Why are we still borrowing even after removing subsidies? If you fill one hole, why dig another?

“This government needs to look at institutions, transparency and how money is being used at all levels. Because if you keep earning more and spending badly, you’ll undo every gain made.

“We have too many sycophants in government. You sit in a meeting, and someone begins with, ‘Mr. President, I thank you for your leadership; God has blessed Nigeria by making you our leader.’ By the time they finish the praise-singing that is the advice the president takes.

“However, people like me that will say ‘Mr. President, this is wrong’ are branded enemies. So, when leaders surround themselves with praise-singers, they never get good advice.

“That is why people like Aigboje Aig-Imoukhuede and myself often end up being enemies of the state because people don’t like hearing bad news.

“We told Buhari everything — about printing money, waste, exchange rates, and subsidy— but each time, it was seen as a personal attack. Those around him convinced him we were enemies. Leaders must begin to ask: who do I surround myself with?

“And ministers should know — it’s not to your benefit to become a praise-singer. You debase yourself when you do that.”

Speaking on why the Jonathan government could not remove the fuel subsidy, Sanusi said: “The only reason the government compromised then was Boko Haram. There were thousands of Nigerians on the streets in Lagos, Kano, Kaduna and there were suicide bombers in the country. I told them, if one of these bombers explodes among protesters, we’d have 200 corpses; it won’t be about subsidy anymore.

“So, I must give President Jonathan credit. He was determined to do it, but at the end of the day, the compromise was made to save lives.”

Sanusi said that in 2012, “We were in a situation where we had what we called a hedge — not a subsidy. You see, a subsidy means the government pays a percentage of the price. But what we had was what, in risk management, you call a naked hedge, the worst possible derivative you can have. You will not pay more than X amount per litre of petrol, no matter what happens.

“So when oil prices rose from $40 to $140, the federal government paid the difference. When exchange rates moved from N155 to N300, the government paid the difference. When interest rates moved from 5 per cent to 15 per cent, the government paid the difference.

“All those costs — crude, refining, transportation, interest — were absorbed by the government. We moved from using revenues to pay subsidies, to borrowing money to pay subsidies, to borrowing money to pay interest on the borrowed money. We became bankrupt."

arantess:
are you the same malali or an imposter?

Depends on who is asking ......Sometimes its the real me, sometimes its AI
And if its the government I am just a content creator.

Almunjid:
It's surprising to see so much hatred for your home country simply because your preferred candidate lost. I wouldn't be surprised if you succumb to depression due to the recent progress Nigeria has made.

Raph82:
There are things U prefer and make priority. He didn't see that as priority when there are lots of jets in the presidential fleet as at that time. For someone planning to be head of states till death, private jets will be the least of his problems. As at then, he had stolen enough to even buy a jet-producing company

AngelicBeing:
For posting this comment, let me call DSS to pick you tomorrow and detain you for 700 years in kebbi state.


cc: DSS, DIA and DMI

Which me ?
The real me or the cloned ?
I am just a content creator

123yes:
Even while in prison he is far better than most of you that are suffering and smiling in this APC hardship government. South EAST is happy with NNAMDI KALU. It is people like you that supports bandits terriorrising the whole part of Nigeria that hate Nnamdi Kalu.

That Fendi shirt must be smelling by now......lol
Is he modeling for Fendi too ?
I am wearing clean laundered clothes and enjoying my freedom. Nnamdi Kanu is not enjoying those 2 things i just mentioned.

I dont hate him, I am just clowning him.
The same way he enjoyed clowning other people.

Are you the real 123yes ? Or is this a clone post too

zoedew:
His sanity is doubtful. I like the way the Judge and Prosecutor are obliging him the adjournments he seeks. On Monday next if he comes with another story his defence will be foreclosed and the Prosecutor will address the court and the court will adjourn for judgment. On appeal he will lose serially. Folks are helping him dig his grave deeper.

Smartcitizen:
Why are you killing yourself because of another person's propaganda?

Were you people not the people who were trying everything possible to sell the propaganda of THE PORT HARCOURT REFINERY WORKING FOR US ALL?

Where is the Port Harcourt refinery working?

How many petroleum products are they refining everyday?

You are angry with another person requesting that he should be kept in jail, so if God should judge you with the same judgement, how will you see your life?


I've told many of you that this APC government will be used against you people in future because of what you have always said to others.

Karma is real.....



🤣🤣🤣🤣🤣