The Federal Government is seeking a $500m World Bank loan to establish an infrastructure financing platform, with approval scheduled for May 25, 2027, four days before the inauguration of Nigeria’s next president.
The proposed facility is part of a broader $3.85bn initiative aimed at attracting private investment into critical infrastructure sectors and addressing Nigeria’s estimated $100bn annual infrastructure financing gap.
According to the World Bank’s Initial Project Information Document, obtained by The PUNCH, the initiative is known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs, or INFRAGROW.
The document, prepared and updated on November 4, 2026, identifies the Federal Ministry of Finance as the borrower and the Nigeria Sovereign Investment Authority as the implementing agency.
The World Bank has scheduled the project’s technical design review for January 21, 2027, while its estimated approval date is May 25, 2027.
Nigeria’s presidential inauguration is constitutionally scheduled for May 29, 2027, following the expiration of the current four-year presidential term.
This means the proposed facility could receive World Bank approval in the final days of Tinubu’s administration. However, approval would not necessarily translate into immediate disbursement or implementation.
The proposed financing has not yet been approved, and the World Bank’s published timetable remains subject to change.
The document estimates Nigeria’s annual infrastructure financing shortfall at approximately $100bn, identifying inadequate investment and weak project preparation as major obstacles to economic growth.
It states, “Nigeria’s infrastructure financing gap, estimated at approx. $100bn annually, remains a binding constraint on growth, fiscal sustainability, competitiveness, and job creation.”
The bank notes that the challenge extends beyond insufficient funding to the difficulty of converting available capital into commercially viable infrastructure investments.
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It adds, “Closing the financing gap therefore requires an integrated approach that combines rigorous project preparation, appropriately calibrated de-risking instruments tailored to each project’s residual risk profile, and targeted sectoral reforms to strengthen the operating environment.”
The proposed $500m World Bank financing comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association.
The broader $3.85bn financing structure is expected to include contributions from the government, private investors and commercial lenders, alongside guarantees designed to attract additional investment.
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, alongside other financing and guarantee arrangements.
The World Bank document also identifies $100m in IDA payment guarantees and $2.25bn in guarantees from other international financial institutions, bringing the total guarantee-related arrangements to $2.35bn.
The financing platform is expected to operate through four independently governed subsidiaries, each designed to address specific barriers to infrastructure investment.
The first, the Project Preparation Facility, will finance feasibility studies, transaction structuring, risk assessments and procurement support to transform infrastructure proposals into investment-ready projects.
The second, the Viability Gap Fund, VGF, will provide financial support for economically important projects that cannot generate sufficient commercial returns while maintaining affordable tariffs or sustainable government payments.
Explaining the proposed funding model, the document states, “Under the proposed endowment model, the VGF would preserve its capital base and finance viability-gap support primarily from 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 assume higher risks.
The fourth, the Credit Guarantee Vehicle, will provide guarantees against specified credit defaults, public sector payment failures and political risks affecting eligible foreign investments.
According to the World Bank, the interventions are intended to encourage participation by commercial banks, pension funds, insurance companies and other institutional investors.
The project will also support reforms to strengthen public institutions responsible for identifying, preparing, procuring and supervising public-private partnership projects.
Its implementation will be organised into four components covering institutional development, project preparation, financing mobilisation and improvements to the regulatory environment.
The first component will fund staffing, professional advisory services, statutory fees and operational infrastructure, with disbursements linked to measurable institutional milestones.
The second will support 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 World Bank describes the proposed initiative as “an institution-building and private capital mobilisation operation intended to expand sustainable infrastructure in Nigeria.”
The project will also involve the International Finance Corporation as a prospective co-investor, alongside the Multilateral Investment Guarantee Agency, which is expected to provide political risk insurance.
However, the bank has classified the project’s environmental and social risks as high, particularly because the financing platform could support major developments in the energy, transport and water sectors.
It warns that such investments could involve land acquisition, community displacement, environmental damage, occupational hazards and other social consequences.
PUNCH
