The World Bank Group says it is helping mobilise up to $5.79 billion in private financing for Nigeria in the 2026 fiscal year through policy reforms, infrastructure investments and financial instruments designed to attract investors.
The initiative combines the expertise of the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) to expand private sector participation in critical areas of the Nigerian economy.
While the World Bank supports policy reforms and development projects, IFC provides direct financing and mobilises commercial lenders and institutional investors, while MIGA offers guarantees to reduce investment risks.
The coordinated approach is intended to channel more private capital into infrastructure, agriculture and small-business financing, with the ultimate goal of boosting productivity and creating jobs.
Since mid-2023, Nigeria has introduced reforms targeting foreign-exchange management, public finances and fuel subsidies to improve economic stability and strengthen investor confidence.
Supported partly by the World Bank’s RESET and NAIJA development policy financing programmes, the reforms are also expected to create opportunities for deeper capital markets, digital trade expansion and increased private investment in the electricity sector.
However, the World Bank Group said the success of the reforms would depend on translating improved economic conditions into investments that deliver tangible benefits to Nigerians.
In the digital sector, the Building Resilient Digital Infrastructure for Growth (BRIDGE) Project is expected to attract at least $156 million in private equity during its first investor selection round.
The project will adopt a public-private partnership model to develop a nationwide open-access fibre-optic network, with subsequent financing rounds projected to unlock up to $1.1 billion in private investment by 2030.
The initiative aims to expand affordable broadband access to an additional 58 million people, increasing coverage from 92 million people in 2025 to 150 million by 2030.
Its targets include connecting millions of households, 38,800 public schools, 16,900 health facilities and 3,400 local government offices to high-speed internet.
The project is also expected to extend connectivity to an additional 42 million young people and 15 million women, improving access to education, healthcare, public services and economic opportunities.
In agriculture, the World Bank Group is supporting efforts to address constraints affecting farmers, including limited access to quality seeds, affordable fertilisers, digital services and reliable markets.
Through its Agricultural Value Chains for Growth (AGROW) Project, the group is targeting one million smallholder farmers, including women and young people, with interventions to strengthen seed and fertiliser systems, improve transparency and expand market access.
AGROW is expected to mobilise about $220 million from agribusiness companies and an additional $22 million from certified seed producers.
The initiative is designed to improve agricultural productivity, strengthen food security and encourage private investment across agricultural value chains.
The World Bank Group is also targeting improved access to finance for micro, small and medium enterprises through its Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) programme.
The programme seeks to expand financing opportunities for more than 250,000 businesses operating in employment-intensive sectors, with women-led enterprises expected to receive 30 per cent of the financing.
A $500 million package from the International Bank for Reconstruction and Development and the International Development Association will combine financing with risk-sharing instruments to encourage financial institutions and other investors to lend to underserved businesses.
FINCLUDE is projected to mobilise nearly $1.89 billion in private financing and support about 850,000 direct and indirect jobs.
Beyond these development programmes, IFC is deploying financing and partnerships to expand domestic fertiliser production and strengthen Nigeria’s digital infrastructure.
In the fertiliser industry, IFC helped mobilise $1.02 billion for Dangote Industries Limited through refinancing and financing involving development institutions and commercial lenders.
It also mobilised $282.5 million for Indorama Fertilizer through syndicated financing.
The two projects have a combined production capacity of 6.8 million metric tonnes annually and are expected to reduce dependence on imported fertiliser, improve access to agricultural inputs and support food production.
The investments complement AGROW’s efforts to strengthen agricultural supply chains by improving the availability of essential inputs for more than 10 million smallholder farmers.
In telecommunications, IFC acted as an anchor investor in a $1.2 billion bond issuance by IHS Towers, helping mobilise more than $1.1 billion from private investors.
The transaction demonstrated investor participation in Nigeria’s digital infrastructure and capital markets, while supporting the expansion of telecommunications infrastructure.
Through its tower-sharing model, IHS Towers enables mobile network operators to extend connectivity at lower costs while reducing the environmental impact of network deployment.
The World Bank Group said the combination of policy reforms, development projects, direct financing and risk-mitigation instruments was designed to attract private investment on a larger scale.
It said the approach would enable public resources to support investments that might otherwise struggle to secure financing, while keeping development outcomes at the centre of the process.
The group said the projected $5.79 billion in private financing for fiscal year 2026 could help expand broadband access, strengthen agricultural value chains, improve financing for small businesses and create economic opportunities for women and young people.
It added that the impact of the strategy would ultimately be reflected in stronger businesses, improved access to essential services, better market opportunities for farmers and broader private sector-led growth in Nigeria.
