World Bank targets $5.79bn investment, 850,000 jobs in Nigeria

By Abubakar Yunusa

The World Bank Group is targeting $5.79bn in private financing for Nigeria in the 2026 fiscal year, with projects expected to create about 850,000 jobs, expand broadband access and improve funding for small businesses and agriculture.

The financing plan, disclosed in a report published on the bank’s website on Sunday, is designed to attract private capital into critical sectors amid efforts to strengthen Nigeria’s economy through reforms and increased investment.

The report, titled Unlocking $5.79 Billion in Private Financing: The World Bank Group Is Leading the Charge for Private Capital Mobilisation in Nigeria, said the funds would support telecommunications, agriculture, micro, small and medium-sized enterprises, and other sectors.

“In fiscal year 2026, the World Bank Group is helping mobilise up to $5.79bn in private financing to address these barriers,” the report stated.

The institution said the initiative would combine policy reforms, commercial investments and risk-sharing arrangements involving the World Bank, the International Finance Corporation and the Multilateral Investment Guarantee Agency.

It attributed the drive partly to economic reforms introduced by the Federal Government since mid-2023, including changes to foreign exchange management, fuel subsidies and public finances.

“Further reforms aim to deepen capital markets, expand digital trade, enable greater private participation in electricity, and improve competitiveness,” the report added.

A major component of the plan is the Building Resilient Digital Infrastructure for Growth project, which is expected to attract at least $156m in private equity during its first investor selection round.

Further investment rounds could unlock up to $1.1bn by 2030 for the development of a nationwide fibre-optic network.

The project is expected to extend 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 also targets connectivity for 38,800 public schools, 16,900 health facilities and 3,400 local government offices.

In agriculture, the bank plans to mobilise $242m through the Agricultural Value Chains for Growth project to support one million smallholder farmers.

The funding comprises $220m expected from agribusiness firms and $22m from certified seed producers.

For small businesses, the Fostering Inclusive Finance for MSMEs in Nigeria programme is expected to attract nearly $1.89bn in private financing and support more than 250,000 enterprises.

Backed by a $500m financing package from the World Bank’s lending institutions, the programme is projected to generate about 850,000 direct and indirect jobs.

The bank said 30 per cent of the financing would be targeted at women-led businesses.

The report also highlighted investments mobilised by the IFC for major industrial and telecommunications projects.

It said the IFC helped mobilise $1.02bn for Dangote Industries Limited and $282.5m for Indorama Fertiliser to expand domestic fertiliser production.

The two projects have a combined annual production capacity of 6.8 million metric tonnes and are expected to improve access to agricultural inputs for more than 10 million farmers.

Similarly, the IFC supported a $1.2bn bond issuance by IHS Towers, helping attract more than $1.1bn from private investors for telecommunications infrastructure.

The World Bank said the financing arrangements were intended to increase private-sector participation in Nigeria’s development.

“Together, these reforms, platforms, guarantees, and investments are helping mobilise up to $5.79bn in private financing in fiscal year 2026,” it stated.

However, the report acknowledged that the benefits would ultimately depend on improvements in infrastructure, access to business financing, agricultural productivity and employment opportunities.