LAGOS, Oct 16 – The World Bank Group is seeking to mobilize up to $5.79 billion in private financing for Nigeria during fiscal year 2026, targeting investment in agriculture, digital infrastructure, telecommunications and small businesses as the country seeks to expand private-sector activity and create jobs.
The initiative combines policy reforms, investment platforms, commercial financing and risk-sharing instruments to attract private investors into sectors facing infrastructure and funding constraints.
The World Bank supports reforms and projects that improve the investment environment, while the International Finance Corporation (IFC) structures investments and mobilizes capital from commercial lenders and institutional investors. The Multilateral Investment Guarantee Agency (MIGA) provides guarantees to help mitigate investment risks.
President Bola Tinubu welcomed the financing initiative, saying it would support his administration’s efforts to attract investment and expand business opportunities.
In a statement posted on his official X account on Friday, Tinubu said “I welcome the World Bank Group’s work to mobilize up to $5.79 billion in private financing for Nigeria. This partnership supports our efforts to help businesses expand and attract investment into agriculture and digital infrastructure,”
The Federal Government has attributed the expanding investment opportunities partly to economic and policy reforms introduced since mid-2023, including changes to foreign exchange management, public finances and fuel subsidies.
Fertiliser Investments Target Agricultural Productivity
Agriculture is a major focus of the initiative, with financing arrangements supporting domestic fertiliser production and efforts to improve access to agricultural inputs.
According to the World Bank Group, the IFC helped mobilise $1.02 billion for Dangote Industries Limited through refinancing and financing from development institutions and commercial lenders. A further $282.5 million was mobilised for Indorama Fertilizer through syndicated financing.
The two fertiliser projects have a combined annual production capacity of 6.8 million metric tonnes and are expected to improve access to inputs for more than 10 million smallholder farmers.
Expanding domestic production could reduce dependence on imported fertiliser and strengthen the availability of inputs used to improve agricultural yields. The broader economic impact will depend on affordability, distribution networks and farmers’ ability to access fertiliser when needed.
The World Bank Group is also supporting the Agricultural Value Chains for Growth (AGROW) project, which targets one million smallholder farmers, including women and young people. The programme aims to strengthen seed and fertiliser systems, improve digital agricultural services and expand connections between producers and markets.
AGROW is expected to mobilise approximately $220 million from agribusiness companies and another $22 million from certified seed producers. These commitments are intended to support investment across agricultural value chains rather than relying solely on financing for fertiliser production.
SME Financing Expected to Support 850,000 Jobs
Small and medium-sized businesses represent another major component of the World Bank Group’s investment mobilisation strategy.
Through its Fostering Inclusive Finance for MSMEs in Nigeria programme, known as FINCLUDE, the institution expects to mobilise nearly $1.89 billion in private financing for micro, small and medium-sized enterprises.
The programme aims to expand access to finance for more than 250,000 businesses in sectors with significant employment potential. It targets 30% of financing towards women-led enterprises and is expected to support approximately 850,000 direct and indirect jobs.
FINCLUDE is backed by a $500 million financing package from the World Bank’s International Bank for Reconstruction and Development and International Development Association. The package combines financing and risk-sharing mechanisms intended to encourage financial institutions and other investors to lend to businesses that might otherwise struggle to secure funding.
Improved access to capital could help businesses expand operations, invest in equipment, increase production and hire additional workers. However, the projected employment figure is an expected programme outcome, not a count of jobs already created.
The programme’s results will depend on the availability and terms of financing, the capacity of participating financial institutions and the ability of beneficiary businesses to sustain growth.
Telecommunications and Digital Infrastructure Attract Private Capital
The financing initiative also targets telecommunications infrastructure, where the IFC has helped mobilise private investment through capital markets.
The World Bank Group reported that the 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 illustrates how participation by a development finance institution can help attract other investors into infrastructure financing. IHS Towers provides telecommunications tower infrastructure used by mobile network operators to extend network coverage and capacity.
Separately, the Building Resilient Digital Infrastructure for Growth (BRIDGE) project is designed to expand broadband connectivity through a public-private partnership to develop a nationwide open-access fibre-optic network.
The World Bank Group expects the first round of investor selection 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 project aims to extend affordable broadband access to an additional 58 million people, increasing the population covered from 92 million in 2025 to 150 million by 2030. Planned connections include public schools, healthcare facilities and local government offices.
Expanded digital infrastructure could improve access to online services, support digital commerce and reduce connectivity barriers for businesses and households. The scale of these benefits will depend on project implementation, affordability and the adoption of digital services.
World Bank Group Seeks to Use Public Support to Unlock Private Investment
The World Bank Group’s strategy is based on combining policy reforms with financing structures that reduce barriers to private investment.
The institution stated: “The World Bank supports reforms and projects that improve the investment environment and create viable opportunities. IFC complements this work by structuring investments, deploying its own capital, and bringing commercial lenders and institutional investors into those opportunities”.
MIGA’s guarantees provide an additional mechanism for addressing risks that could deter investors, particularly in projects requiring substantial upfront capital and long investment periods.
The approach is intended to use development finance and public-sector reforms to attract larger pools of commercial capital into infrastructure and productive industries.
For Nigeria, the proposed financing could support agricultural productivity, small-business expansion and digital connectivity while reducing the extent to which these investments depend exclusively on public funding.
However, the $5.79 billion figure represents private financing the World Bank Group is helping to mobilise, not a single loan or grant to the Nigerian government. The amount also encompasses different projects and financing arrangements, with some investments already structured and others expected to attract additional capital over time.
The initiative’s ultimate impact will depend on how much financing is secured and deployed, whether projects meet their targets, and whether improved access to capital translates into sustainable business growth, higher productivity and employment.
