The World Bank has confirmed that the Nigerian government has requested $1 billion Development Policy Financing loan.

The Bretton Woods Institution has now set December 16 as the tentative approval date for the loan request.

According to a project brief released by the Bank on October 27, the details of the loan are aimed to support Nigeria’s economic reforms, boost private investment, and create jobs under a new programme titled Nigeria Actions for Investment and Jobs Acceleration (P512892).

The $1bn package combines $500m in IDA credit and $500m in IBRD loan to strengthen growth, improve access to finance, and advance digital governance, Punch reports.

The initiative is coordinated through the Bank’s Macroeconomics, Trade, and Investment division for Western and Central Africa and is designed to strengthen Nigeria’s reform momentum, create jobs, and attract private investment.

Built to consolidate post-reform stability, the facility forms part of a broader support framework aimed at helping Nigeria move from macroeconomic stabilisation toward inclusive and sustainable growth.

The Bank confirmed that the Federal Ministry of Finance will lead the implementation process, while preparations for the loan have already been approved.

Part of the bank document reads: “The proposed Development Policy Financing supports Nigeria’s pivot from stabilisation to inclusive growth and job creation. “Structured as a two-tranche operation of US$1.0 billion, it is expected to boost private-sector–driven investment by expanding credit access, deepening capital markets, improving digital infrastructure, moderating inflation, and promoting export diversification.”

The World Bank observed that while the macroeconomic environment has improved, Nigeria’s economy “has yet to transition decisively to a higher and more inclusive growth trajectory,” emphasising the need for increased investment to spur productivity and job creation.

Why does FG need $1 billion loan?

The proposed $1 billion programme will focus on two main policy pillars, stimulating private-sector expansion and lowering the cost of doing business, with particular emphasis on agriculture, trade, and digital services, the Sun reports. Under the first pillar, the financing will support initiatives such as the Investment and Securities Act 2025, new credit enhancement tools, and a Central Bank rulebook to strengthen microfinance and non-bank institutions.

It will also back the proposed National Digital Economy and E-Governance Bill 2025, which aims to establish a legal foundation for electronic transactions, authentication systems, and digital record-keeping, a critical step toward a more transparent and paperless public sector.