Nigeria seeks World Bank guarantees to unlock private investment

||Bangkok

Nigeria is seeking greater access to World Bank guarantees to attract private investment into infrastructure and sustain economic growth as the government looks to convert recent reform gains into jobs and higher living standards.

Taiwo Oyedele, minister of finance and coordinating minister of the economy and Olayemi Cardoso, governor, Central Bank of Nigeria (CBN) discussed the financing options with Ajay Banga, World Bank group president on monday on the sidelines of the 2026 IMF and World Bank Group Annual Meetings holding in Bangkok, Thailand.

The meeting focused on Nigeria’s next phase of economic reforms, including efforts to accelerate growth, attract private capital and increase domestic revenue mobilisation.

Banga commended Nigeria’s reform progress, citing an increase in private capital inflows from about $300 million in 2023 to nearly $6 billion in 2026, a twentyfold rise over the period.

The increase highlights the government’s efforts to attract investment as it seeks to strengthen macroeconomic stability and expand financing for critical sectors of the economy.

Oyedele also pointed to an improvement in Nigeria’s tax-to-gross domestic product ratio, which rose from about 7% to 12.5% over the same period. The higher ratio gives the government greater capacity to fund public investment through revenue rather than relying on deficit monetisation, according to the minister.

The discussions centred on how Nigeria could make better use of World Bank guarantee instruments to mobilise financing for infrastructure projects and encourage more private capital to flow into the domestic economy.

Such guarantees can help reduce risks for investors and lenders, potentially making projects more attractive to private financiers.

The instruments could help Nigeria provide an avenue to bridge infrastructure financing gaps without placing the entire burden on public finances.

Power infrastructure and human capital development were identified as priorities for continued public investment, reflecting their importance to business competitiveness, productivity and employment.

The officials also emphasised the need to improve the quality of government spending, ensuring that public funds generate measurable economic and social benefits.

Nigeria’s ability to translate rising investment and improved revenue mobilisation into stronger economic outcomes will depend partly on whether reforms deliver sustained private-sector activity and address constraints facing businesses.

Reliable electricity, better infrastructure and a more productive workforce remain important to expanding output and creating jobs, experts have consistently stressed.

The meeting forms part of the federal government’s broader engagement with development partners during the annual meetings, as it seeks to consolidate reform gains and secure additional investment.

For the government, the challenge now is to move beyond stabilising the economy towards generating faster, more inclusive growth. Mobilising private financing, improving public spending and directing investment towards productive sectors are central to that effort.

The ministry of finance said the discussions reflected Nigeria’s commitment to turning stronger economic fundamentals into productive investment, employment opportunities and improved living standards.