World Bank targets $5.79bn private financing for Nigeria, projects 850,000 jobs

The World Bank Group says it is helping to mobilise up to 5.79 billion dollars in private financing to accelerate Nigeria’s economic transformation, expand infrastructure and create employment opportunities.

According to the News Agency of Nigeria (NAN), the Bretton Woods institution disclosed this in a report published on Sunday, outlining investments and financing arrangements covering agriculture, telecommunications, small businesses and other critical sectors.

The report, titled: “Unlocking $5.79 billion in Private Financing”, explained how coordinated public-sector reforms and private investment could help address Nigeria’s development challenges.

According to the bank, the initiative combines policy reforms, investment platforms, commercial financing and risk-mitigation instruments to attract capital into productive sectors.

It said the approach was designed to transform improvements in Nigeria’s investment environment into projects capable of creating jobs and expanding economic opportunities.

The Bretton Woods institution identified the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) as important partners in mobilising private capital.

It explained that IFC supports investment structuring and commercial financing, while MIGA provides guarantees intended to reduce risks confronting investors.

The bank said Nigeria’s economic reforms since mid-2023 had helped create more predictable conditions for investment, particularly through foreign-exchange management and public-finance measures.

It identified the Building Resilient Digital Infrastructure for Growth (BRIDGE) Project as a major initiative expected to attract substantial private investment.

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According to the report, the project’s initial investor-selection process is expected to mobilise at least 156 million dollars in private equity.

Subsequent financing rounds could unlock up to $1.1 billion in private investment by 2030, supporting the expansion of Nigeria’s broadband infrastructure.

The bank projected that the initiative could extend affordable broadband access to an additional 58 million Nigerians by 2030.

It said broadband coverage could consequently increase from 92 million people in 2025 to approximately 150 million by the end of the decade.

The beneficiaries are expected to include 42 million additional young people and 15 million women, alongside thousands of schools and healthcare facilities.

The institution said the infrastructure programme would also connect 38,800 public schools, 16,900 health facilities and 3,400 local government offices.

On small-business financing, the bank identified its Fostering Inclusive Finance for MSMEs in Nigeria programme, known as FINCLUDE, as another major intervention.

It said the programme was expected to mobilise nearly 1.89 billion dollars in private financing and support approximately 850,000 direct and indirect jobs.

The initiative targets more than 250,000 micro, small and medium enterprises, with particular attention to businesses operating in employment-intensive sectors.

The bank explained that the programme included a 500 million dollars financing package combining resources from the International Bank for Reconstruction and Development and International Development Association.

In agriculture, the institution said its Agricultural Value Chains for Growth Project would support approximately one million smallholder farmers.

The programme is expected to attract about 220 million dollars from agribusiness companies and another 22 million dollars from certified seed producers.

The bank also highlighted IFC-supported financing arrangements involving Dangote Industries Limited and Indorama Fertilizer to strengthen Nigeria’s domestic fertiliser production.

It disclosed that IFC helped mobilise 1.02 billion dollars for Dangote and 282.5 million dollars for Indorama through financing arrangements involving development institutions and commercial lenders.

According to the institution, the investments could improve agricultural productivity and strengthen access to inputs for more than 10 million smallholder farmers.

The report further identified IFC’s participation in a 1.2 billion-dollar bond issuance by IHS Towers as another example of private-capital mobilisation.

It said the transaction helped attract more than 1.1 billion dollars from private investors into telecommunications infrastructure.

The bank maintained that coordinated investments in digital connectivity, agriculture and business financing could strengthen productivity and support private-sector-led economic growth.

It stressed, however, that the 5.79 billion dollars represented financing already mobilised alongside anticipated investment, rather than a newly approved loan or grant.

The institution said the ultimate measure of success would be the resulting improvements in employment, infrastructure, agricultural productivity and economic opportunities for Nigerians.