The World Bank Group has fixed December 16 as the tentative date for the approval of Nigeria’s $1 billion Development Policy Financing (DPF) under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme.
A project document published in the development finance institution’s website last week indicated that the facility comprised a $500 million from International Development Association (IDA) credit and a $500 million loan from International Bank for Reconstruction and Development (IBRD).
According to the Washington D.C-based bank, the proposed financing, which falls under its Macroeconomics, Trade and Investment Practice for the Western and Central Africa region, is aimed at supporting ongoing economic reforms, boosting private investment, and creating jobs in the country.
The document indicated that the facility sought to consolidate Nigeria’s post-reform stability and promote inclusive growth across key sectors and that its operation implementation will be coordinated through the Federal Ministry of Finance, with the World Bank approving the preparation process for its commencement.
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It would be recalled that since the assumption of office of President Bola Tinubu in 2023, his administration had embarked on sundry fiscal and monetary reforms, including the removal of petrol subsidy, the unification of exchange rates, and the discontinuation of the Central Bank of Nigeria’s (CBN’s) deficit financing regime.
The government maintained that these measures, championed under the present administration’s Renewed Hope Agenda, had stabilised the economy, narrowed fiscal deficits and restored investor confidence in the nation’s economy.
Despite the economic gains of the reform initiatives which have been globally acknowledged by development experts, the country is still contending with some challenges as more than 130 million Nigerians still living in poverty.
For instance, the World Bank Group, while acknowledging the progress made so far, observed that the economy had yet to shift decisively into a higher and inclusive growth path, harping on the imperative of new investments to boost productivity, diversify exports, and create employment.
The proposed DPF focuses on two key pillars, namely unlocking private sector growth and reducing the cost of doing business, with a view to broadening opportunities in agriculture, trade and digital services sectors.
