The World Bank says it plans to help Nigeria attract up to $5.79 billion in private-sector financing in 2026, with investments targeting broadband infrastructure, agriculture and small businesses.
In a feature published on 11 October, the global financial institution said the funding would be mobilised through investment projects, policy reforms, commercial lending and guarantees designed to attract private investors.
The bank said reforms introduced since mid-2023 to improve foreign exchange management, strengthen public finances and overhaul fuel subsidies were helping to establish more predictable conditions for investors.
It added that further reforms would prioritise the development of capital markets, expansion of digital trade, increased private-sector participation in electricity and improved competitiveness.
World Bank targets $1.89bn for small businesses
The institution said its Fostering Inclusive for MSMEs in Nigeria (FINCLUDE) programme is expected to attract $1.89 billion in private financing for more than 250,000 micro, small and medium-sized enterprises (MSMEs).
The programme is supported by a $500 million funding package from the International Bank for Reconstruction and Development and the International Development Association.
According to the bank, women-led businesses are expected to receive 30 per cent of the financing, while the initiative is projected to support 850,000 direct and indirect jobs.
Broadband project targets $1.1bn investment
The World Bank also said its Building Resilient Digital Infrastructure for Growth (BRIDGE) project could attract up to $1.1 billion in private investment by 2030 to develop a nationwide open-access fibre-optic network.
The first round of investor selection is expected to generate at least $156 million in private equity, the institution said.
The project aims to extend affordable broadband access to an additional 58 million people, increasing coverage from 92 million in 2025 to 150 million by 2030.
The proposed network is also expected to connect 38,000 public schools, 16,900 healthcare facilities and 3,400 local government offices.
IFC financing supports fertiliser production
The institution disclosed that the International Finance Corporation (IFC) helped mobilise $1.02 billion for Dangote Industries Limited through refinancing involving development institutions and commercial lenders.
It also secured $282.5 million for Indorama Fertiliser through syndicated financing.
The two projects have a combined annual production capacity of 6.8 million metric tonnes and are expected to improve fertiliser access for more than 10 million smallholder farmers, according to the World Bank.
Meanwhile, its Agricultural Value Chains for Growth (AGROW) project aims to reach one million smallholder farmers, including women and young people.
The initiative is expected to attract approximately $220 million from agribusiness companies, alongside another $22 million from certified seed producers.
‘IFC BACKS $1.2BN IHS BOND’
The World Bank said the IFC acted as an anchor investor in a $1.2 billion bond issuance by IHS Towers, helping to attract more than $1.1 billion from private investors.
It explained that the World Bank supports reforms and projects aimed at improving the investment climate, while the IFC structures investments and brings commercial lenders and institutional investors into projects.
The Multilateral Investment Guarantee Agency, another member of the World Bank Group, provides guarantees to mitigate risks that could discourage private investment.
The institution said the coordinated approach was designed to leverage public resources to attract larger volumes of private capital, boost infrastructure development and productivity, and create jobs.