The World Bank Group plans to mobilise up to $5.79bn in private financing for Nigeria during the 2026 fiscal year, targeting investments in telecommunications, agriculture, small businesses and other key sectors.
The initiative is expected to expand broadband connectivity, improve agricultural productivity, increase access to business credit and support the creation of approximately 850,000 direct and indirect jobs.
The institution disclosed the plan in a report published on its website on Sunday, titled Unlocking $5.79bn in Private Financing: The World Bank Group Is Leading the Charge for Private Capital Mobilisation in Nigeria.
“In fiscal year 2026, the World Bank Group is helping mobilise up to $5.79bn in private financing to address these barriers,” the report stated.
According to the institution, the initiative combines policy reforms, commercial investments and risk-sharing arrangements involving the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
Digital Infrastructure to Receive Major Investment
One of the key components of the financing plan is the Building Resilient Digital Infrastructure for Growth project, which aims to attract private investment for the expansion of Nigeria’s fibre-optic network.
The first investor selection round is expected to attract at least $156m in private equity, while subsequent rounds could unlock up to $1.1bn by 2030.
The project aims to increase the number of Nigerians with broadband access from 92 million in 2025 to 150 million by 2030, extending coverage to an additional 58 million people.
It also targets connectivity for 38,800 public schools, 16,900 healthcare facilities and 3,400 local government offices.
The World Bank said the initiative forms part of broader efforts to address infrastructure gaps and improve the conditions needed for private-sector investment.
Agriculture and Small Businesses Among Priorities
The financing strategy also includes plans to mobilise $242m for the Agricultural Value Chains for Growth project, which targets one million smallholder farmers.
The proposed funding comprises $220m expected from agribusiness companies and $22m from certified seed producers.
The programme is intended to strengthen agricultural value chains and improve farmers’ access to the resources needed to increase productivity.
For micro, small and medium-sized enterprises, the Fostering Inclusive Finance for MSMEs in Nigeria programme is expected to attract nearly $1.89bn in private financing and support more than 250,000 businesses.
The initiative is backed by a $500m financing package from the World Bank’s lending institutions and is projected to generate about 850,000 direct and indirect jobs.
The report also stated that 30 per cent of the programme’s financing would be targeted at women-led businesses, as part of efforts to widen access to capital.
Dangote, Indorama and IHS Projects Receive Support
The report highlighted previous financing arrangements involving major Nigerian businesses and infrastructure operators as examples of efforts to mobilise private capital.
The IFC helped mobilise $1.02bn for Dangote Industries Limited and $282.5m for Indorama Fertiliser to support the expansion of domestic fertiliser production.
The two projects have a combined annual production capacity of 6.8 million metric tonnes and are expected to improve access to agricultural inputs for more than 10 million farmers.
In the telecommunications sector, the IFC supported a $1.2bn bond issuance by IHS Towers, helping attract more than $1.1bn from private investors for telecommunications infrastructure.
These investments illustrate the World Bank Group’s approach of using financing arrangements and risk-sharing mechanisms to encourage private investors to participate in projects considered important for economic development.
Economic Reforms Intended to Attract Investors
The World Bank linked its financing drive to economic reforms introduced in Nigeria since mid-2023, particularly changes to foreign exchange management, fuel subsidies and public finances.
It said some of the reforms had received support through its RESET and NAIJA development policy financing programmes.
Further reforms are intended to deepen capital markets, expand digital trade, encourage greater private participation in electricity and improve the competitiveness of Nigerian businesses.
The institution said the combined use of reforms, investment platforms, guarantees and commercial financing could help mobilise up to $5.79bn in private capital during fiscal year 2026.
However, the expected benefits will depend on how effectively the investments address infrastructure deficiencies, financing constraints, agricultural challenges and barriers to employment.
The financing target represents capital the World Bank Group aims to mobilise, rather than confirmation that the entire amount has already been invested or disbursed…Read more