The World Bank Group plans to help Nigeria mobilise up to $5.79 billion in private financing in 2026, targeting small businesses, digital infrastructure, agriculture and industrial production.
The strategy combines policy reforms, investment projects, commercial financing and risk guarantees to encourage private investors to support businesses and infrastructure. The bank said reforms introduced since mid-2023, including changes to foreign exchange management, public finances and fuel subsidies, have helped create a more predictable environment for investors.
Further efforts will focus on developing domestic capital markets, expanding digital trade, encouraging private investment in electricity and improving Nigeria’s competitiveness.
Financing for small businesses
A major component of the plan is the Fostering Inclusive Finance for MSMEs in Nigeria (FINCLUDE) programme, which is expected to mobilise $1.89 billion in private financing for more than 250,000 micro, small and medium-sized enterprises.
The programme is supported by a $500 million financing package from the International Bank for Reconstruction and Development and the International Development Association.
Women-owned businesses are expected to receive 30 per cent of the financing, while the initiative is projected to support 850,000 direct and indirect jobs.
The programme aims to improve access to finance for businesses that often struggle to obtain affordable credit, helping them expand operations and create employment.
Digital infrastructure investment
The World Bank is also supporting the Building Resilient Digital Infrastructure for Growth (BRIDGE) project, which could attract up to $1.1 billion in private investment by 2030.
The project aims to establish a nationwide open-access fibre-optic network. The first investor-selection round is expected to attract at least $156 million in private equity.
The network is designed to extend affordable 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 is also expected to connect approximately 38,000 public schools, 16,900 health facilities and 3,400 local government offices, improving access to digital services and supporting public-sector delivery.
Industrial financing and agriculture
In manufacturing, the International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, has helped mobilise financing for major Nigerian companies.
The IFC helped secure $1.02 billion for Dangote Industries Limited through financing involving development institutions and commercial lenders. It also mobilised $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.
The Agricultural Value Chains for Growth (AGROW) project is another part of the strategy. It targets one million smallholder farmers, including women and young people, while seeking to attract about $220 million from agribusiness companies and an additional $22 million from certified seed producers.
These investments are intended to strengthen domestic production, improve access to agricultural inputs and support food security.
Private capital for telecommunications
The World Bank Group is also using capital-market transactions to attract investment into telecommunications infrastructure.
The IFC acted as an anchor investor in a $1.2 billion bond issuance by IHS Towers, helping mobilise more than $1.1 billion from private investors.
The transaction illustrates how development finance institutions can use their participation to encourage commercial investors to support large infrastructure projects.
The Multilateral Investment Guarantee Agency (MIGA), another member of the World Bank Group, provides guarantees against specified investment risks that could otherwise discourage private capital.
Implementation will determine the impact
The $5.79 billion target reflects the World Bank Group’s strategy of using reforms, financing and risk-sharing instruments to attract private investment into Nigeria’s productive sectors.
However, the amount represents financing the group aims to mobilise, rather than money already disbursed to businesses or completed projects.
The impact will depend on whether the planned investments are implemented successfully, whether businesses can access the financing and whether the projects deliver measurable improvements in productivity, infrastructure and employment.
For Nigeria, the central challenge is to turn the investment target into stronger businesses, wider digital access, improved agricultural output and sustainable job creation.
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