The World Bank has approved a $1.25 billion financing package for Nigeria to support key economic reforms aimed at accelerating investment, stimulating private sector growth, and creating more jobs across the country.

The funding, approved under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing (DPF) programme, is designed to help Nigeria transition towards a more inclusive and resilient economic growth model.

In a statement, the World Bank said the facility will support reforms that strengthen the foundations for sustainable economic growth, improve the country’s competitiveness, and create an enabling environment for increased private sector investment.

According to the lender, the reform programme will focus on deepening Nigeria’s capital markets to improve access to finance for businesses and investors, while also modernising regulations governing the digital economy and expanding e-governance initiatives to improve public service delivery.

The financing will also support ongoing reforms in the power sector aimed at improving electricity supply and enhancing the operational efficiency of the industry. In addition, it seeks to reduce trade barriers in line with Nigeria’s commitments under the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA), with the goal of boosting regional trade and economic integration.

The World Bank added that the programme includes measures to improve farmers’ access to high-quality agricultural seeds, a move expected to increase agricultural productivity and strengthen food security across the country.

Another key component of the reform package is strengthening domestic revenue mobilisation by improving government revenue collection and reducing reliance on borrowing, thereby supporting long-term fiscal sustainability.