Nigeria is seeking greater access to World Bank guarantee instruments to attract private investment into infrastructure and support its transition from economic stabilisation to stronger growth.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, and Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), discussed the financing options with Ajay Banga, President of the World Bank Group, on Monday, October 12, 2026, on the sidelines of the IMF and World Bank Group Annual Meetings in Bangkok, Thailand.
The meeting focused on ways to attract more private capital, expand infrastructure financing and increase domestic revenue as the government seeks to translate recent economic reforms into job creation and improved living standards.
Banga acknowledged Nigeria’s reform progress, highlighting an increase in private capital inflows from about $300 million in 2023 to nearly $6 billion in 2026, according to the Federal Ministry of Finance.
Oyedele also noted that Nigeria’s tax-to-gross domestic product ratio had increased from approximately 7 per cent to 12.5 per cent over the same period.
Guarantees to reduce investment risks
World Bank guarantees can help reduce specific risks associated with infrastructure projects, making them more attractive to private investors and commercial lenders.
By providing certain forms of risk protection, the instruments can help projects secure financing that might otherwise be difficult or expensive to obtain.
Nigeria hopes to use the guarantees to mobilise private capital for critical infrastructure without placing the entire financing burden on public finances.
Power infrastructure and human capital development were identified as priority areas during the discussions because of their importance to business productivity, competitiveness and employment.
The officials also stressed the need to improve the quality of public spending so that government expenditure produces measurable economic and social benefits.
Building on economic reforms
The discussions come as Nigeria seeks to attract more investment following reforms to foreign exchange management, public finances and fuel subsidies introduced since mid-2023.
The government is working to strengthen investor confidence and create conditions that encourage businesses to commit capital to long-term projects.
However, increased investment inflows alone do not guarantee broad economic benefits. The impact will depend on whether financing reaches productive sectors, infrastructure projects are completed and businesses can operate in a more reliable environment.
Reliable electricity, improved transport and digital infrastructure, and a skilled workforce remain important to reducing operating costs and expanding economic activity.
World Bank targets $5.79bn in private financing
The World Bank Group is also working to mobilise up to $5.79 billion in private financing for Nigeria in fiscal year 2026 through a combination of investment projects, policy reforms, commercial financing and risk-mitigation instruments.
The strategy targets sectors including digital infrastructure, agriculture, small-business financing and domestic fertiliser production.
The bank’s approach combines World Bank support for reforms and development projects with investments from the International Finance Corporation (IFC) and guarantees from the Multilateral Investment Guarantee Agency (MIGA).
These instruments are intended to reduce barriers to investment and encourage private financiers to participate in projects that support economic development.
From stability to stronger growth
The meeting forms part of the Federal Government’s broader engagement with international development partners during the annual meetings in Bangkok.
For Nigeria, the next challenge is to turn improvements in economic indicators into productive investment, new jobs and better living conditions.
Greater access to World Bank guarantees could help mobilise additional financing, but results will depend on the projects selected, the risks covered and the effectiveness of implementation.
The government’s ability to attract private capital while improving infrastructure and public spending will be important to sustaining growth and widening its benefits across the economy.
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