The Federal Government of Nigeria is seeking a fresh $500 million loan from the World Bank to establish an infrastructure financing platform designed to attract private investment into critical sectors of the economy.
The proposed facility is scheduled for consideration by the World Bank on May 25, 2027, just four days before the inauguration of Nigeria’s next president, scheduled for May 29, 2027.
According to the World Bank’s Initial Project Information Document, the proposed borrowing forms part of a broader $3.85 billion initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW).
The project 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 proposed $500 million financing comprises $400 million from the International Bank for Reconstruction and Development (IBRD) and $100 million from the International Development Association (IDA).
The World Bank has also scheduled a technical design review of the project for January 21, 2027, ahead of the proposed approval date.
However, the facility has not yet received approval, and the proposed timetable remains subject to change.
Approval would also not necessarily mean immediate disbursement or commencement of implementation.
Nonetheless, beyond the proposed World Bank loan, the INFRAGROW initiative is designed to mobilise approximately $3.85 billion through a combination of government contributions, private-sector investments, commercial lending and guarantees from international financial institutions.
Under the proposed arrangement, the NSIA is expected to contribute $200 million in equity as a founding shareholder, while private investors are projected to provide another $200 million.
Commercial debt financing is estimated at $600 million.
The financing structure also includes $100 million in payment guarantees from the IDA and $2.25 billion in guarantees from other international financial institutions, bringing the proposed guarantee arrangements to $2.35 billion.
The proposed platform will operate through four independently governed subsidiaries designed to address major challenges affecting infrastructure financing in Nigeria.
These include a Project Preparation Facility, which will finance feasibility studies, risk assessments, transaction structuring and procurement support to make infrastructure projects more attractive to investors.
A Viability Gap Fund will provide financial support for economically important projects that cannot generate sufficient commercial returns while maintaining affordable tariffs and sustainable government payments.
The third component, a Risk Capital Facility, will provide equity and patient capital to infrastructure projects that struggle to attract investors because of their risk profiles.
The fourth, a Credit Guarantee Vehicle, will provide guarantees against specified credit defaults, public-sector payment failures and political risks affecting eligible investments.
The World Bank expects the facilities to encourage participation by commercial banks, pension funds, insurance companies and other institutional investors.
The World Bank also estimates Nigeria’s annual infrastructure financing gap at approximately $100 billion, identifying inadequate investment and weak project preparation as major constraints to economic growth, competitiveness, fiscal sustainability and job creation.
The bank noted that addressing the deficit would require more than additional funding, stressing the importance of developing commercially viable projects, strengthening risk-sharing mechanisms and implementing reforms to improve the investment environment.
Despite its proposed economic benefits, the World Bank has classified the project’s environmental and social risks as high.
The concerns are linked to potential infrastructure developments in sectors such as energy, transport and water, which could involve land acquisition, community displacement, environmental damage and occupational hazards.
The proposed financing arrangement is expected to require appropriate environmental and social safeguards during project preparation and implementation.
The timing of the proposed loan approval, coming just days before the scheduled presidential inauguration, places the initiative among the major financial and infrastructure commitments that could be inherited by Nigeria’s incoming administration.
