The Federal Government is seeking a fresh $500m loan from the World Bank to establish an infrastructure financing platform aimed at attracting private investment into critical sectors of the Nigerian economy.
The proposed loan, scheduled for consideration and possible approval on May 25, 2027, comes just four days before the inauguration of Nigeria’s next president on May 29, raising concerns over the timing of the proposed borrowing and its implications for the incoming administration.
According to the World Bank’s Initial Project Information Document obtained by The Punch, 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, otherwise called INFRAGROW.
The document, prepared and updated on November 4, 2026, identifies the Federal Ministry of Finance as the borrower, while the Nigeria Sovereign Investment Authority (NSIA) will serve as the implementing agency.
The World Bank has scheduled the project’s technical design review for January 21, 2027, with May 25, 2027, set as its estimated approval date. However, the proposed financing has not yet been approved, and the timetable remains subject to change.
The document estimates Nigeria’s annual infrastructure financing gap at approximately $100bn, identifying inadequate investment and weak project preparation as major obstacles to economic growth, fiscal sustainability, competitiveness and job creation.
The proposed $500m World Bank financing comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association.
The wider $3.85bn financing structure is expected to attract contributions from government, private investors, commercial lenders and international financial institutions. The NSIA is projected to contribute $200m in equity, while private investors are expected to provide another $200m, alongside $600m in commercial debt financing.
The arrangement will also include $100m in IDA payment guarantees and $2.25bn in guarantees from other international financial institutions.
Under the proposed structure, INFRAGROW will operate through four independently governed subsidiaries designed to address different barriers to infrastructure investment.
These include a Project Preparation Facility to fund feasibility studies and transaction structuring; a Viability Gap Fund to support economically important projects that cannot generate sufficient commercial returns; a Risk Capital Facility to provide equity and patient capital; and a Credit Guarantee Vehicle to protect eligible investments against specified credit defaults, public-sector payment failures and political risks.
The initiative is also expected to strengthen the capacity of public institutions responsible for identifying, preparing, procuring and supervising public-private partnership projects.
Its implementation will cover institutional development, project preparation, financing mobilisation and improvements to the regulatory environment.
The International Finance Corporation is expected to participate as a prospective co-investor, while the Multilateral Investment Guarantee Agency may provide political risk insurance.
However, the World Bank has classified the project’s environmental and social risks as high, citing potential consequences associated with infrastructure developments in the energy, transport and water sectors.
These risks include land acquisition, displacement of communities, environmental damage, occupational hazards and other social challenges.
The World Bank said the proposed INFRAGROW project is designed to strengthen institutions and mobilise private capital to expand sustainable infrastructure development in Nigeria.
