The World Bank Group plans to mobilise up to $5.79bn in private financing for Nigeria in the 2026 fiscal year to boost investment in telecommunications, agriculture, small businesses and other critical sectors.
The initiative is expected to expand broadband access, improve agricultural productivity, increase access to business financing and support the creation of approximately 850,000 jobs.
According to a report published on the World Bank’s website on Sunday, titled Unlocking $5.79bn in Private Financing: The World Bank Group Is Leading the Charge for Private Capital Mobilisation in Nigeria, the funding drive will combine policy reforms, commercial investments and risk-sharing arrangements.
The initiative involves the World Bank, the International Finance Corporation and the Multilateral Investment Guarantee Agency.
The report stated that the institutions were working to address barriers to private investment through financing arrangements designed to attract capital into Nigeria’s economy.
Digital Infrastructure to Receive Major Investment
A key component of the initiative is the Building Resilient Digital Infrastructure for Growth project, which is expected to attract at least $156m in private equity during its first investor selection round.
Further financing rounds could unlock up to $1.1bn by 2030 to support the development of a nationwide fibre-optic network.
The project aims to extend broadband access to an additional 58 million Nigerians, increasing the number of people covered from 92 million in 2025 to 150 million by 2030.
It also targets improved connectivity for 38,800 public schools, 16,900 healthcare facilities and 3,400 local government offices.
The investment is expected to strengthen digital access and support the delivery of public services across the country.
Agriculture and Small Businesses to Benefit
In agriculture, the World Bank plans to mobilise $242m through the Agricultural Value Chains for Growth project, which targets one million smallholder farmers.
The funding comprises $220m expected from agribusiness firms and $22m from certified seed producers.
The initiative is designed to strengthen agricultural value chains and improve farmers’ access to essential inputs.
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.
Backed by a $500m financing package from the World Bank’s lending institutions, the programme could generate approximately 850,000 direct and indirect jobs.
The report added that 30 per cent of the financing would be targeted at women-led businesses.
Dangote, Indorama and IHS Towers Attract Funding
The report also highlighted private-sector investments facilitated by the International Finance Corporation.
The IFC helped mobilise $1.02bn for Dangote Industries Limited and $282.5m for Indorama Fertiliser to expand domestic fertiliser production.
Together, the two projects have an 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 infrastructure development.
These investments form part of broader efforts to expand private-sector participation in sectors considered important to Nigeria’s economic development.
Reforms to Support Private Investment
The World Bank linked its financing plans to economic reforms introduced in Nigeria since mid-2023, particularly changes to foreign exchange management, fuel subsidies and public finances.
According to the report, its RESET and NAIJA development policy financing programmes have provided support for reforms intended to improve conditions for private investment.
The bank said further reforms would focus on deepening capital markets, expanding digital trade, encouraging greater private participation in the electricity sector and improving competitiveness.
It added that the success of the financing initiative would depend on improvements in infrastructure, access to business financing, agricultural productivity and employment opportunities.
The World Bank Group said the combination of reforms, investment platforms, guarantees and commercial investments was expected to help mobilise up to $5.79bn in private financing for Nigeria during the 2026 fiscal year.
