In New Partnership, Nigeria Secures $1.25bn World Bank Support to Boost Jobs

• New financing to deepen reforms across power, agriculture, digital economy and capital markets 

•Mathew Verghis: Nigeria must address deeper structural constraints to unlock private investment, translate economic stability into improved living standards

• IFC Director: long-term growth prospects depend on ability to attract investment, improve productivity, unlock private sector employment

• FG seeks stronger partnership with Bretton Woods institution to fast-track water, irrigation projects

James Emejo and Folalumi Alaran in Abuja

The World Bank Group, yesterday, approved a new seven-year partnership framework for Nigeria, alongside a fresh $1.25 billion financing package aimed at accelerating private investment, expanding job opportunities, and sustaining the country’s ongoing economic reforms.

The new Country Partnership Framework (CPF), covering 2026 – 2032, sought to translate recent macroeconomic improvements into broad-based economic gains by removing long-standing structural bottlenecks that had constrained private sector growth and employment.

World Bank also approved the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) operation, designed to strengthen the foundations for investment, competitiveness, and inclusive economic growth.

According to the World Bank, the new strategy builds on recent reforms that have resulted in stronger economic growth, improved government revenues, higher foreign reserves, and renewed investor confidence.

It stated, however, that sustained job creation remained Nigeria’s most pressing development challenge.

Under the framework, World Bank planned to support the country in expanding electricity access to 32 million people, providing broadband connectivity for 58 million Nigerians, improving health and nutrition services for 40 million citizens, and supporting 9.5 million farmers through measures to boost agricultural productivity.

The programme also sought to strengthen human capital development while expanding access to digital infrastructure and energy to stimulate private enterprise and improve productivity across critical sectors.

In a statement, World Bank Country Director for Nigeria, Mathew Verghis, said the new partnership placed job creation at the centre of the institution’s engagement with the country.

Verghis stated that while recent macroeconomic reforms had helped stabilise the economy, Nigeria must now address deeper structural constraints to unlock private investment and translate economic stability into improved living standards.

He said, “Our new Country Partnership Framework provides the strategy for how the World Bank Group will support Nigeria over the coming years, with a strong focus on helping to create more and better jobs, particularly by enabling private sector-led growth.

“The recent macroeconomic gains have been critical to help stabilize the economy. Translating improved macroeconomic conditions into better living standards will require addressing the structural constraints to spur private sector investment and job creation.”

The DPF will support government reforms aimed at deepening Nigeria’s capital markets, modernising regulations governing the digital economy and e-governance, advancing electricity sector reforms to accelerate electrification, improving access to quality agricultural seeds, and strengthening domestic revenue mobilisation.

The programme will also support efforts to reduce trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area (AfCFTA), a move expected to enhance regional trade and ease price pressures.

The World Bank said the financing formed part of a broader package combining policy reforms with investments in energy, agriculture, digital infrastructure, private sector development, and social protection to improve economic resilience and reduce poverty.

International Finance Corporation (IFC) Divisional Director for Nigeria, Dahlia Khalifa, said the country’s long-term growth prospects would depend on its ability to attract investment, improve productivity, and unlock private sector employment.

Khalifa said the partnership would help expand infrastructure and essential services while creating conditions for businesses to innovate, compete, and convert ongoing reforms into wider economic opportunities.

Similarly, AMIGA Vice President/Chief Financial Officer, Ed Mountfield, said although Nigeria’s reform programme had opened new investment opportunities, risks facing investors remained significant.

Nevertheless, Mountfield said MIGA would expand the use of guarantees and political risk insurance under the new framework to encourage greater private investment, particularly in infrastructure and the financial sector, thereby supporting job creation and economic growth.

He said, “Nigeria’s reform progress is creating important opportunities for private investment, but risks remain for investors. MIGA’s role is to help manage these risks—through guarantees and political risk insurance—so that investors can step in with confidence.

“Under the CPF, the World Bank Group Guarantee Platform housed within MIGA will scale our support in priority areas such as the financial sector and infrastructure to help unlock jobs and growth.”

Meanwhile, the federal government pledged to strengthen its partnership with the World Bank to accelerate the delivery of safe water and expand irrigation infrastructure as part of efforts to improve food security and create jobs across Nigeria.

Minister of Water Resources and Sanitation, Joseph Utsev, made the commitment yesterday in Abuja while receiving a delegation from the World Bank ahead of the Africa Water Forum scheduled to hold later this month in N’Djamena, Chad.

Utsev said the President Bola Tinubu administration’s Renewed Hope Agenda placed priority on expanding access to potable water and boosting agricultural productivity through irrigation.

He stressed that closer collaboration with the World Bank would speed up the implementation of the Sustainable Power and Irrigation for Nigeria (SPIN) Project and other strategic interventions in the water sector.

Utsev stated that improved irrigation infrastructure was critical to increasing all-year-round farming, strengthening food production, reducing rural poverty, and enhancing economic growth.

The minister also confirmed Nigeria’s participation in the Africa Water Forum, describing the event as an opportunity to present ongoing reforms in the country’s water sector, attract investment, and strengthen partnerships aimed at improving water security, sanitation, and irrigation development.

According to him, Nigeria will use the forum to highlight reforms designed to expand access to safe and sustainable water, particularly in underserved communities, while showcasing investment opportunities in the sector.

Earlier, World Bank’s Task Team Leader for the SPIN Project, Zack Zieglhifer, alongside Co-Task Team Leader, Engr. Chinedu Umolu, said their visit was to coordinate Nigeria’s participation in the Africa Water Forum.

They explained that the forum, organised by West African countries, in collaboration with the World Bank and other development partners, will bring together policymakers, development partners and private sector stakeholders to explore innovative financing mechanisms and practical solutions for addressing Africa’s growing water security challenges.