The Federal Government is seeking a $500m loan from the World Bank to establish a new platform aimed at attracting private investment into Nigeria’s infrastructure sector.

The proposed facility, known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW), is part of a broader $3.85bn financing initiative designed to address the country’s infrastructure funding challenges.

According to project documents obtained by The PUNCH, the World Bank has scheduled the proposed facility for approval on May 25, 2027, just four days before the expected inauguration of Nigeria’s next president on May 29.

The Federal Ministry of Finance is listed as the borrower, while the Nigeria Sovereign Investment Authority (NSIA) will oversee implementation.

The proposed $500m financing comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association. However, the loan is yet to receive approval, and the proposed timeline may change.

The wider $3.85bn initiative is expected to combine funding from the World Bank, government institutions, private investors, commercial lenders and international financial guarantees. The NSIA is projected to contribute $200m in equity, with private investors expected to provide an additional $200m.

The platform will operate through four specialised facilities focusing on preparing infrastructure projects, supporting projects with funding gaps, providing risk capital and offering credit guarantees to attract more investors.

The initiative is also expected to strengthen public-private partnerships, improve project development and encourage investment in critical sectors, including energy, transportation and water.

The World Bank estimates that Nigeria faces an annual infrastructure financing gap of approximately $100bn, identifying limited funding and inadequate project preparation as major barriers to development.

The proposed project has been classified as having high environmental and social risks due to potential concerns such as land acquisition, community displacement, environmental damage and workplace safety issues associated with infrastructure development.

The World Bank’s technical design review for the initiative is scheduled for January 21, 2027, ahead of its proposed approval date in May.

Source: The PUNCH,