The World Bank Group says it is helping to mobilise $5.79 billion in private capital for Nigeria’s agriculture, telecommunications and micro, small and medium enterprises sectors, as the institution seeks to expand private investment, improve digital connectivity and support job creation.
The investment drive combines policy reforms, commercial financing, risk-sharing mechanisms and investment platforms designed to remove barriers to private-sector participation in the Nigerian economy.
According to the World Bank Group, the initiative will support domestic fertiliser production, expand access to affordable credit for small businesses and accelerate broadband infrastructure development across the country.
The institution said its approach combines the policy and development work of the World Bank with investment financing from the International Finance Corporation (IFC), which mobilises commercial lenders and institutional investors to fund viable projects.
“The World Bank supports reforms and projects that improve the investment environment and create viable opportunities. IFC complements this work by structuring investments, deploying its own capital, and bringing commercial lenders and institutional investors into those opportunities,” the institution said.
Vanguard reports funding push comes as the Federal Government pursues economic reforms aimed at improving foreign exchange management, strengthening public finances, restructuring fuel subsidies and creating more predictable conditions for investors.
Agriculture Attracts $1.3bn for Fertiliser Production
In agriculture, the World Bank Group highlighted financing arrangements for Dangote Industries Limited and Indorama Fertilizer, which it said were helping to expand domestic fertiliser production and improve access to agricultural inputs for more than 10 million smallholder farmers.
The IFC helped mobilise $1.02 billion for Dangote through refinancing arrangements and financing from development institutions and commercial lenders. A further $282.5 million was mobilised for Indorama through syndicated financing.
The two projects have a combined annual production capacity of 6.8 million metric tonnes of fertiliser.
According to the World Bank Group, the investments could reduce Nigeria’s dependence on imported agricultural inputs, improve fertiliser availability and affordability, and strengthen food security.
The World Bank Group said its Fostering Inclusive Finance for MSMEs in Nigeria programme, known as FINCLUDE, is designed to improve the availability and quality of financing for more than 250,000 micro, small and medium enterprises operating in job-intensive sectors.
The programme is expected to mobilise nearly $1.89 billion in private financing and support an estimated 850,000 direct and indirect jobs.
It is backed by a $500 million financing package from the International Bank for Reconstruction and Development and the International Development Association, combining financing and risk-sharing instruments to encourage financial institutions and other investors to extend credit to underserved businesses.
Women-led enterprises are a key target of the programme, accounting for 30% of its targeted financing.
Telecoms Secure $1.1bn Private Investment
In the telecommunications sector, the IFC acted as an anchor investor in a $1.2 billion bond issuance by IHS Towers, helping to mobilise more than $1.1 billion from private investors.
The World Bank Group said the transaction demonstrated investor confidence in Nigeria’s digital infrastructure sector and capital markets.
IHS Towers operates telecommunications infrastructure that allows mobile network operators to share tower facilities rather than independently build and maintain all their infrastructure.
The shared-infrastructure model can reduce network deployment costs, accelerate the expansion of mobile connectivity and lower the environmental footprint associated with telecommunications infrastructure.
The investment comes as Nigeria seeks to expand digital access and improve the infrastructure supporting mobile communications and internet services.
