By Merit Ibe
The World Bank Group is seeking to mobilise up to $5.79 billion in private financing for Nigeria to accelerate economic transformation, expand critical infrastructure and create jobs across key sectors.
The initiative, detailed in a report titled “Unlocking $5.79 Billion in Private Financing,” outlines investment opportunities and financing arrangements covering agriculture, telecommunications, small businesses and other productive sectors.
According to the report, the strategy combines policy reforms, investment platforms, commercial financing and risk-mitigation instruments to attract private capital and address Nigeria’s development challenges.
The institution said the approach was designed to translate improvements in the investment climate into bankable projects capable of stimulating economic growth, expanding businesses and creating employment opportunities.
It identified the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) as key partners in mobilising private investment.
While IFC supports investment structuring and commercial financing, MIGA provides guarantees to mitigate risks and encourage investors to commit capital to development projects.
The World Bank noted that economic reforms introduced by the Nigerian government since mid-2023, particularly in foreign exchange management and public finance, had helped establish more predictable conditions for investment.
Among the major initiatives highlighted is the Building Resilient Digital Infrastructure for Growth (BRIDGE) Project, which is expected to attract significant private investment into the country’s broadband infrastructure.
The report stated that the project’s initial investor-selection process was expected to mobilise at least $156 million in private equity, while subsequent financing rounds could unlock up to $1.1 billion in private investment by 2030.
The investment is expected to expand broadband access to an additional 58 million Nigerians, increasing the number of people covered from 92 million in 2025 to approximately 150 million by the end of the decade.
The anticipated beneficiaries include 42 million additional young people and 15 million women, alongside thousands of schools, healthcare facilities and public institutions.
The project is also expected to connect 38,800 public schools, 16,900 health facilities and 3,400 local government offices, strengthening access to digital services and supporting economic activities across the country.
On small-business financing, the World Bank identified its Fostering Inclusive Finance for MSMEs in Nigeria programme, known as FINCLUDE, as another major intervention.
The programme is expected to mobilise nearly $1.89 billion in private financing and support approximately 850,000 direct and indirect jobs.
It targets more than 250,000 micro, small and medium enterprises (MSMEs), with particular emphasis on businesses operating in employment-intensive sectors.
According to the report, the programme includes a $500 million financing package combining resources from the International Bank for Reconstruction and Development and the International Development Association.
The initiative is expected to improve access to finance for smaller businesses, enabling them to expand operations, invest in productive assets and create employment.
In agriculture, the institution highlighted the Agricultural Value Chains for Growth Project, which is expected to support approximately one million smallholder farmers.
The project is projected to attract about $220 million from agribusiness companies and an additional $22 million from certified seed producers to strengthen agricultural value chains and improve productivity.
The World Bank also highlighted IFC-supported financing arrangements involving Dangote Industries Limited and Indorama Fertilizer as examples of investments aimed at strengthening domestic fertiliser production.
It disclosed that IFC helped mobilise $1.02 billion for Dangote Industries and $282.5 million for Indorama through financing arrangements involving development finance institutions and commercial lenders.
The investments are expected to strengthen local fertiliser supply, improve access to agricultural inputs and support productivity among more than 10 million smallholder farmers.
The report further cited IFC’s participation in a $1.2 billion bond issuance by IHS Towers as an example of efforts to attract private capital into telecommunications infrastructure.
According to the institution, the transaction helped mobilise more than $1.1 billion from private investors to support investments in the sector.
The World Bank’s financing strategy reflects its broader approach of using public-sector reforms and development finance instruments to attract private investment into areas where funding constraints have limited growth.
By combining commercial financing, guarantees and targeted development programmes, the institution expects to encourage greater private-sector participation in infrastructure, agriculture, digital connectivity and small-business development.
The success of the initiatives will depend on the ability to convert financing commitments into operational projects, expand access to productive infrastructure and ensure that the resulting investments translate into sustainable jobs and wider economic opportunities for Nigerians.