World Bank Plans $5.79bn Private Financing for Nigeria

The World Bank Group is working to mobilise up to $5.79 billion in private financing for Nigeria in the 2026 fiscal year, targeting investments in digital infrastructure, agriculture, small businesses and other key sectors.

The initiative, announced in a report published on Sunday, combines policy reforms, commercial investments, risk-sharing mechanisms and financing platforms to attract private capital into projects intended to support economic growth and job creation.

According to the World Bank, the financing drive builds on economic reforms introduced since mid-2023, including changes to foreign exchange management, fuel subsidies and public finances. The bank said further reforms would focus on deepening capital markets, expanding digital trade and encouraging greater private participation in the electricity sector.

A major component is the Building Resilient Digital Infrastructure for Growth (BRIDGE) project, which aims to expand nationwide fibre-optic connectivity. The first round of investor selection is expected to attract at least $156 million in private equity, with subsequent financing potentially unlocking up to $1.1 billion by 2030.

The project aims to extend broadband access to an additional 58 million people and connect public schools, healthcare facilities and local government offices to high-speed internet.

In agriculture, the Agricultural Value Chains for Growth (AGROW) project targets one million smallholder farmers by improving access to quality seeds, fertiliser, digital services and markets. The initiative is expected to mobilise about $220 million from agribusiness firms and another $22 million from certified seed producers.

The World Bank Group is also supporting the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) programme, designed to improve access to credit for more than 250,000 micro, small and medium-sized enterprises. The programme is expected to mobilise nearly $1.89 billion in private financing and support an estimated 850,000 direct and indirect jobs, with 30 per cent of financing targeted at women-led businesses.

The report also highlights financing support for domestic fertiliser production by Dangote Industries and Indorama Fertiliser, alongside private investment in telecommunications infrastructure through IHS Towers.

The World Bank said the approach brings together policy reforms, investment platforms, commercial financing and guarantees to reduce risks and encourage investors.

However, the institution noted that the ultimate impact would depend on how effectively the financing translates into improved infrastructure, stronger businesses, increased productivity and employment opportunities.

The Federal Government has welcomed the initiative, describing it as an opportunity to strengthen private-sector-led growth and expand investment across the country.