The World Bank Group plans to help Nigeria mobilise up to $5.79 billion in private financing in 2026, targeting investments in small businesses, digital infrastructure, agriculture and industrial production as the country seeks to attract more capital into its economy.
The financing strategy will combine investment projects, policy reforms, commercial lending and guarantees to encourage private investors to fund businesses and infrastructure, according to a World Bank feature published on October 11.
The Washington-based institution said reforms introduced since mid-2023 to improve foreign-exchange management, strengthen public finances and overhaul fuel subsidies were helping establish a more predictable environment for investors.
Further measures will focus on developing domestic capital markets, expanding digital trade, encouraging private investment in electricity and improving Nigeria’s competitiveness, the lender said.
A major component of the strategy 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 (IBRD) and the International Development Association (IDA), two institutions within the World Bank Group.
Women-owned businesses are expected to receive 30 percent of the financing, while the initiative is projected to support 850,000 direct and indirect jobs.
The World Bank is also backing efforts to expand digital connectivity through its Building Resilient Digital Infrastructure for Growth (BRIDGE) project, which could attract as much as $1.1 billion in private investment by 2030.
The project aims to establish a nationwide open-access fibre-optic network, with the first round of investor selection 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, raising the number of people covered from 92 million in 2025 to 150 million by 2030.
Beyond household connectivity, the project is expected to link 38,000 public schools, 16,900 health facilities and 3,400 local government offices, potentially expanding access to digital services and improving public-sector delivery.
In manufacturing, the International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, has helped mobilise substantial financing for major Nigerian industrial companies.
The IFC helped secure $1.02 billion for Dangote Industries Limited through refinancing involving development finance institutions and commercial lenders. It also mobilised $282.5 million for Indorama Fertiliser through syndicated financing.
Together, the two projects have an annual production capacity of 6.8 million metric tonnes and are expected to improve fertiliser access for more than 10 million smallholder farmers.
The World Bank’s Agricultural Value Chains for Growth (AGROW) project is another pillar of its investment programme. 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.
The group is also using capital-market transactions to draw private investors 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 World Bank Group said its approach combines policy support with direct investment and risk mitigation to expand the pool of financing available for development. While the World Bank supports reforms and projects designed to improve investment conditions, the IFC structures transactions and brings commercial lenders and institutional investors into projects.
The Multilateral Investment Guarantee Agency (MIGA), another member of the group, provides guarantees against specified investment risks that might otherwise discourage private capital.
The strategy reflects the institution’s broader effort to use public financing and policy changes to attract larger volumes of private investment into infrastructure, business expansion and productive sectors.
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Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.
