This initiative, outlined in the report titled “Unlocking $5.79bn in Private Financing: The World Bank Group Is Leading the Charge for Private Capital Mobilisation in Nigeria,” is expected to significantly improve broadband access, agricultural productivity, and credit availability, ultimately creating around 850,000 jobs.
The financing strategy will encompass a combination of policy reforms, commercial investments, and risk-sharing partnerships involving the World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). It underscores the linkage between this investment effort and recent economic reforms introduced in Nigeria, particularly in aspects of foreign exchange management, fuel subsidies, and public finances initiated since mid-2023. The report emphasizes that these reforms, supplemented by the RESET and NAIJA development policy financing programmes, have been instrumental in fostering a conducive environment for private investment.
Key projects within this financing initiative include the Building Resilient Digital Infrastructure for Growth project, expected to attract at least $156 million in private equity in its first funding round and potentially unlock up to $1.1 billion by 2030 for the development of a nationwide fibre-optic network. This project aims to extend broadband coverage from 92 million people in 2025 to 150 million by 2030, targeting connectivity for approximately 38,800 public schools, 16,900 health facilities, and 3,400 local government offices.
Additionally, the World Bank intends to mobilize $242 million through the Agricultural Value Chains for Growth project, benefiting around one million smallholder farmers with investment contributions from agribusiness firms and certified seed producers. The Fostering Inclusive Finance for MSMEs in Nigeria programme is projected to attract nearly $1.89 billion in private financing, which will support over 250,000 enterprises and generate approximately 850,000 direct and indirect jobs, with a particular focus on women-led businesses.
The IFC has played a pivotal role in mobilizing substantial funds for industrial projects, including $1.02 billion for Dangote Industries Limited and $282.5 million for Indorama Fertiliser, significantly enhancing domestic fertilizer production capabilities. Furthermore, the IFC assisted in a $1.2 billion bond issuance by IHS Towers, leading to over $1.1 billion in private investment for telecommunication infrastructure.
Ultimately, the success of these financing arrangements hinges on improvements in Nigeria’s infrastructure, business financing, agricultural productivity, and job creation, reflecting the World Bank’s commitment to driving private sector participation in the nation’s development.
