₦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.

Source: https://punchng.com/world-bank-to-consider-nigerias-fresh-1bn-loan-request/

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.

U see, all what they are after is loan loan loan, and nothing to show for it.

Loans with no tangible results or verifiable projects. Tinubu thought his embrace of neo-liberal policies of the Worldbank and IMF would make him the darling of the West but that has proven not to be the case under Donald Trump. He's now under immense pressure. At least, Nigerians saw the tangible projects that Chinese loans under Buhari provided. Roads, rails, bridges, airports and seaports. Nothing to show under Tinubu.

So that they can use it to buy more weapons and food for Fulani terrorists and Boko Haram Islamic fundamentalists?

Wait first, make Trump and other well-meaning people come so that they can inspect how the money is spent. 1 billion is a lot of money, If dem no watch am well, Fulani go collect at least 10% inside there.

Hold off on it first, let's get US auditors in so they can oversee the cash flow

Now they are back again to the loan issue. God save Nigeria from the criminals in government

Apc administration is all about loans, loans and more debt

Shior

who are those collecting loans that might be spent on on frivolities

What is Tinubu doing with all these loan here and there. Loan that has no effect on the common man.

E be like say loan get another meaning

Nigerians need to stand up against this loan

These guys are using us to cash out

We need to rise against further loans

If PDP borrowed to pay subsidy and gave us affordable life, APC is borrowing to increase hardship

WE SAY NO TO FURTHER TINUBU LOAN REQUESTS

He has removed subsidy. He should use the savings

What manner of evil is this?

Some people go too cry again. There is a 2025 to 2027 Medium Term Expenditure Framework & Fiscal Strategy Paper (MTEF‑FSP) for Nigeria already. This ALREADY includes about N9.22 trillion planned for new borrowings. And debt service: ~N15.38 trillion in the envelope.
So don't have an heart attack or convulsions each time a part of it is mentioned, presented or executed. The whole plan of the 2025‑2027 Medium‑Term Expenditure Framework & Fiscal Strategy Paper (MTEF/FSP) for the Federal Republic of Nigeria was approved as follows:

It was approved by the Senate of Nigeria on or around 3–4 December 2024.

It was also approved earlier by the House of Representatives (Nigeria) on 27 November 2024.

Prior to the legislative approval, the document was published by the Budget Office of the Federation on 15 November 2024, marked as “FEC Approved”.
If each of this same news is increasing your BP, sorry for your lack of proper education.

sweetkev:
What is Tinubu doing with all these loan here and there. Loan that has no effect on the common man.

He is feeling the effect of his induced inflation

Money don useless

Big money , little value

Borrow borrow borrow, then tax tax tax. Shame!

They keep borrowing and stealing.

If dem approve am I fit go village go rise our forgotten Oracle for all of them o. Loan again?

It is the agencies that advance the loan that i hold responsible.

I had thought that with the removal of subsidy and taxes here and there, the country wouldn't be borrowing.

Stop borrowing them for Christ sake

malali:
Source: https://punchng.com/world-bank-to-consider-nigerias-fresh-1bn-loan-request/

lol this urchin really wan finish this country. Old men that don’t have anything good for this cursed nation only loan loan loan. TINUBU SHA, who swear for us with this people ooopp

These are the guys who are destroying Nigeria and not the U.S as claimed online by some miscreants. You are giving a 1 billion dollar loan to a country who hasn’t given any account of the previous loans that has been given to it.

nawa, this is really bad. this man is wicked

And they get surprised why Trump called them Disgraced Country.

Borrow borrow and you call yourself Sovereignty Why won't USA chook mouth and do anyhow when a so called sovereign nation is always borrowing.

You Cut fuel subsidy
And you are still borrowing. No be juju be that

We are a "Sovereign nation" don dey request for Loan....

The "sovereign nation" that the US is after their resources has gone to borrow again o

Tinubu the master strategist in borrowing.

All these people borrowing Nigeria money, by the time Nigeria dissolves to its ethnic nationalities, they'll look for their monies from the cr1minal politicians they're borrowing.

Biafra will be restored!

Tinubu the king looter

looting like there's no tomorrow

borrowed more than administrations that paid subsidy

Garnish:
I had thought that with the removal of subsidy and taxes here and there, the country wouldn't be borrowing.

They borrowed, and loot the money through contract they approved/award to fellow politicians, friends and relatives from the beer parlor and smil to the bank and foreign countries through the company's foreign office

The more we cut their fingers not to collect, the more they grow another. This is nothing but blatant and absolute rascality at the extreme. What a country after subsidies removal.

correctyourself:
They borrowed, and loot the money through contract they approved/award to fellow politicians, friends and relatives from the beer parlor and smil to the bank and foreign countries through the company's foreign office

If this is the case, then it is quite disappointing.