The Federal Government is seeking a $500m loan from the World Bank to establish an infrastructure financing platform aimed at attracting private investment into critical sectors of the Nigerian economy.
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The proposed facility is part of a broader $3.85bn infrastructure financing initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW).
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According to the World Bank’s Initial Project Information Document obtained by The PUNCH on Sunday, the proposed loan is scheduled for approval on May 25, 2027, four days before the inauguration of Nigeria’s next president.
The document, prepared and updated on November 4, 2026, identifies the Federal Ministry of Finance as the borrower and the Nigeria Sovereign Investment Authority (NSIA) as the implementing agency.
The World Bank has scheduled the project’s technical design review for January 21, 2027, while May 25, 2027, is its estimated approval date.
With the presidential inauguration constitutionally scheduled for May 29, 2027, the proposed facility could receive approval in the final days of President Bola Tinubu’s current tenure.
However, the loan has not yet been approved, and the published timetable remains subject to change. Approval would also not automatically translate into immediate disbursement or implementation.
The World Bank document estimates Nigeria’s annual infrastructure financing gap at approximately $100bn, identifying inadequate investment and weak project preparation as major constraints to economic growth, fiscal sustainability, competitiveness and job creation.
It explained that the challenge was not limited to insufficient funding but also involved difficulties in converting available capital into commercially viable infrastructure projects.
The bank said addressing the gap would require better project preparation, financial instruments tailored to specific investment risks and reforms to improve the operating environment.
The proposed $500m financing comprises $400m from the International Bank for Reconstruction and Development (IBRD) and $100m from the International Development Association (IDA).
The wider $3.85bn financing structure is expected to attract contributions from government, private investors, commercial lenders and international financial institutions.
Under the arrangement, the NSIA is expected to contribute $200m in equity as a founding shareholder, while private sector investors are projected to provide another $200m.
Commercial debt financing is estimated at $600m, while guarantee arrangements include $100m in IDA payment guarantees and $2.25bn from other international financial institutions.
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The platform will operate through four independently governed subsidiaries designed to address different barriers to infrastructure investment.
The first, the Project Preparation Facility, will finance feasibility studies, transaction structuring, risk assessments and procurement support to prepare infrastructure proposals for investment.
The second, the Viability Gap Fund, will provide financial support for economically important projects that cannot generate sufficient commercial returns while maintaining affordable tariffs or sustainable government payments.
According to the document, the proposed endowment model would preserve the fund’s capital base and finance viability-gap support mainly through investment returns.
The third subsidiary, the Risk Capital Facility, will provide equity and other forms of patient capital to commercially viable infrastructure projects that struggle to attract investors willing to accept higher risks.
The fourth, the Credit Guarantee Vehicle, will offer guarantees against specified credit defaults, public-sector payment failures and political risks affecting eligible foreign investments.
The World Bank said the facilities were intended to encourage participation by commercial banks, pension funds, insurance companies and other institutional investors.
The project will also support reforms aimed at strengthening public institutions responsible for identifying, preparing, procuring and supervising public-private partnership projects.
Its implementation will be divided into four components covering institutional development, project preparation, financing mobilisation and improvements to the regulatory environment.
The first component will support staffing, professional advisory services, statutory fees and operational infrastructure, with disbursements linked to measurable institutional milestones.
The second will focus on project preparation and financial viability, while the third will activate the risk capital and credit guarantee facilities. The fourth will strengthen government capacity to manage infrastructure partnerships and their associated fiscal risks.
The bank described INFRAGROW as an institution-building and private capital mobilisation initiative intended to expand sustainable infrastructure development in Nigeria.
The International Finance Corporation is also expected to participate as a prospective co-investor, while the Multilateral Investment Guarantee Agency is expected to provide political risk insurance.
Meanwhile, the World Bank has classified the proposed project’s environmental and social risks as high, particularly because the platform could support major developments in the energy, transport and water sectors.
It warned that such projects could involve land acquisition, displacement of communities, environmental damage, occupational hazards and other social consequences.
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