The Federal Government is seeking a fresh $500 million loan from the World Bank to establish a platform aimed at attracting private investment into Nigeria’s infrastructure sector.
The proposed facility forms part of a broader $3.85 billion financing initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW).
According to the World Bank’s Initial Project Information Document, the Federal Ministry of Finance will serve as the borrower, while the Nigeria Sovereign Investment Authority (NSIA) will implement the project.
The document was prepared and updated on November 4, 2026. It lists May 25, 2027, as the proposed approval date.
This is four days before Nigeria’s next presidential inauguration, scheduled for May 29, 2027.
However, the proposed loan has not been approved. The World Bank’s timeline could also change, and approval would not automatically mean immediate disbursement.
How the Proposed $3.85bn Facility Will Work
The World Bank estimates Nigeria’s annual infrastructure financing gap at approximately $100 billion.
It identifies inadequate investment and weak project preparation as major obstacles to infrastructure development and economic growth.
The proposed $500 million facility comprises $400 million from the International Bank for Reconstruction and Development (IBRD) and $100 million from the International Development Association (IDA).
The wider $3.85 billion financing structure is expected to attract funding from government, private investors, commercial lenders and international financial institutions.
Under the proposal, the NSIA is expected to contribute $200 million in equity. Private investors are projected to provide another $200 million, while commercial debt financing could contribute $600 million.
The arrangement also includes $2.35 billion in guarantees, comprising $100 million in IDA payment guarantees and $2.25 billion from other international financial institutions.
Four Facilities to Support Infrastructure Investment
The proposed platform will operate through four independently governed subsidiaries.
The first is the Project Preparation Facility. It will fund feasibility studies, risk assessments, transaction structuring and procurement support to prepare projects for investment.
The second, the Viability Gap Fund, will support economically important projects that cannot generate enough commercial returns while maintaining affordable tariffs or sustainable government payments.
The third is the Risk Capital Facility. It will provide equity and other long-term financing to viable projects that struggle to attract investors because of higher risks.
The fourth, the Credit Guarantee Vehicle, will provide guarantees against selected credit defaults, public-sector payment failures and political risks affecting eligible foreign investments.
The World Bank expects the facilities to attract commercial banks, pension funds, insurance companies and other institutional investors.
World Bank Flags Environmental and Social Risks
Beyond financing, the proposed project will support reforms to improve infrastructure planning and public-private partnerships.
The initiative will also strengthen public institutions responsible for preparing, procuring and supervising infrastructure projects.
However, the World Bank has classified the proposed project’s environmental and social risks as high.
The bank warned that infrastructure investments in energy, transport and water could involve land acquisition, community displacement, environmental damage and occupational hazards.
The project is also expected to involve the International Finance Corporation as a prospective co-investor. The Multilateral Investment Guarantee Agency is expected to provide political risk insurance.
The proposed platform is designed to mobilise private capital and improve infrastructure delivery. Its approval, financing and implementation will depend on the next stages of the World Bank’s assessment.
