W/Bank mobilises $5.79bn private capital for Nigeria
World Bank Group Mobilizes $5.79 Billion for Investments in Nigeria
By Emma Ujah, Abuja Bureau Chief
The World Bank Group has announced its initiative to mobilize $5.79 billion in private capital aimed at enhancing investments in Nigeria’s agriculture, telecommunications, and micro, small, and medium enterprises (MSMEs). This move is part of a broader strategy to increase private-sector involvement in the country’s economy.
The financing effort is complemented by various policy reforms, investment platforms, risk-sharing mechanisms, and commercial financing aimed at overcoming investment barriers and unlocking growth potential in key sectors. This initiative is also anticipated to bolster food security, enhance financial access for small businesses, expand digital connectivity, and generate employment opportunities, aligning with the Federal Government’s ongoing efforts to improve the business climate and attract private investments.
“The World Bank supports reforms and projects that enhance the investment environment and create viable opportunities. The International Finance Corporation (IFC) complements this work by structuring investments and engaging commercial lenders and institutional investors,” stated the organization.
In the agricultural sector, the World Bank highlighted its financial support for Dangote Industries Limited and Indorama Fertilizer. These arrangements are expected to significantly increase domestic fertilizer production and improve access to agricultural inputs for over 10 million smallholder farmers. The IFC successfully mobilized $1.02 billion for Dangote through refinancing and input from development institutions and commercial lenders, while Indorama received $282.5 million through syndicated financing. The combined production capabilities of these projects total 6.8 million metric tons annually, potentially reducing Nigeria’s dependence on imported agricultural inputs.
The World Bank’s Fostering Inclusive Finance for MSMEs in Nigeria program, known as FINCLUDE, is set to enhance the quality and availability of financing for more than 250,000 MSMEs engaged in labor-intensive sectors. Of this funding, 30 percent is dedicated to women-led enterprises, reflecting efforts to improve access to credit among businesses that face challenges in securing affordable financing.
Supported by a $500 million package from the International Bank for Reconstruction and Development and the International Development Association, FINCLUDE is expected to mobilize nearly $1.89 billion in private financing and create around 850,000 direct and indirect jobs. This initiative is crucial for Nigeria, where limited access to affordable credit hampers small business growth.
In telecommunications, the IFC has played a significant role as an anchor investor in a $1.2 billion bond issuance by IHS Towers, successfully mobilizing more than $1.1 billion from private investors. This transaction underscores investor confidence in Nigeria’s digital infrastructure and capital markets. The innovative tower-sharing model utilized by IHS Towers enables mobile network operators to enhance connectivity at a reduced cost while lowering the environmental impact of network expansion.
Beyond the telecommunications sector, the World Bank is advancing its Building Resilient Digital Infrastructure for Growth (BRIDGE) Project, which aims to develop Nigeria’s digital infrastructure through public-private partnerships. This project will establish a nationwide open-access fiber-optic network, relying on private-sector investment rather than solely on public financing. The initial phase of investor selection is expected to raise at least $156 million in private equity, with potential future financing rounds unlocking up to $1.1 billion by 2030.
The initiative aims to broaden broadband access to an additional 58 million people, expanding coverage from 92 million in 2025 to 150 million by 2030, benefiting an estimated 42 million young people and 15 million women. Additionally, the project will connect millions of households, along with 38,800 public schools, 16,900 health facilities, and 3,400 local government offices to high-speed internet.
According to the World Bank, these expanded connectivity efforts will enhance access to education and healthcare, improve public service delivery, and create new economic opportunities. The bank also attributed the increased attractiveness of private investments to reforms implemented by the Federal Government in areas such as foreign exchange management, public financial strengthening, fuel subsidy reform, and creating more predictable conditions for investors.
