Nigeria - Actions for Investment and Jobs Acceleration Development Policy Financing

Overview & Synopsis

The development objective of the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing for Nigeria is to support the transition to a more inclusive, private sector–led growth model by expanding access to finance, digital services, and electricity, and by enhancing competitiveness through trade, tax, and agriculture reforms. The operation strengthens capital markets and credit intermediation through the Investment and Securities Act 2025 and new regulations for credit enhancement facilities, modernizes the legal and regulatory framework for the digital economy and e-governance to expand trusted e-transactions and digital public services, and advances power sector reforms via a National Integrated Electricity Policy, a national metering framework, and streamlined rules for private investor participation in interconnected mini-grids. It reduces trade costs and supports diversification by operationalizing African Continental Free Trade Area tariff concessions, removing import bans on priority food and input products, and phasing down Import Adjustment Taxes, while raising agricultural productivity through a simplified varietal release process aligned with regional standards and a decentralized, third-party seed certification system. It increases non-oil revenues and improves compliance by mandating value-added tax electronic invoicing, introducing a minimum effective corporate tax rate for large companies and multinational enterprises, and adjusting the top personal income tax rate. The project intends to catalyze greater private financing through guarantees, increase the digital share of service exports and women’s access to identification for service delivery, expand electrification via more interconnected mini-grids and customer metering, lower food and input prices by reducing trade barriers, raise the availability of certified seed, and lift the non-oil tax-to-GDP ratio, thereby improving the business environment, creating more productive jobs, and reducing poverty.