Tinubu govt seeks fresh $500m World Bank facility

The Federal Government is seeking a $500m World Bank loan to establish an infrastructure financing platform expected to mobilise $3.85bn in investments, with the proposed approval date falling four days before the inauguration of Nigeria’s next president.
The timing of the proposed facility, scheduled for consideration on 25 May 2027, places it in the closing days of President Bola Tinubu’s administration, whose tenure is expected to end on 29 May 2027.

The proposed borrowing comes amid growing political activities ahead of the 2027 general elections and could leave the incoming administration with a major infrastructure financing arrangement to oversee.
According to the World Bank’s Initial Project Information Document, the proposed facility is part of the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs, known as INFRAGROW.

The document, prepared and updated on 4 November 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 21 January 2027, ahead of the proposed approval date of 25 May.
However, the proposed $500m facility has not been approved, and the bank's timetable remains subject to change. Approval would also not necessarily translate into immediate disbursement or implementation.
The financing platform is designed to address Nigeria's estimated $100bn annual infrastructure funding gap by attracting private capital into critical sectors of the economy.

The World Bank identified inadequate investment and poor project preparation as major obstacles to infrastructure development.
It stated, “Nigeria’s infrastructure financing gap, estimated at approx. $100bn annually, remains a binding constraint on growth, fiscal sustainability, competitiveness, and job creation.”
The bank said the challenge was not limited to a shortage of funds but also involved difficulties in turning available capital into commercially viable infrastructure projects.

It added, “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.”
The proposed World Bank loan comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association.

The wider $3.85bn financing arrangement is expected to combine the World Bank facility with government contributions, private investments, commercial lending and guarantees from international financial institutions.
Under the proposed structure, the NSIA will contribute $200m in equity as a founding shareholder, while private investors are expected to provide another $200m.

Commercial debt financing is projected at $600m.
The arrangement also includes $100m in payment guarantees from the IDA and $2.25bn in guarantees from other international financial institutions.

The platform will operate through four independently governed subsidiaries designed to address different challenges affecting infrastructure investment.

These include a Project Preparation Facility to fund feasibility studies, risk assessments, transaction structuring and procurement support; 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 investors against specified credit defaults, public-sector payment failures and political risks.

Explaining the proposed viability-gap arrangement, the World Bank said, “Under the proposed endowment model, the VGF would preserve its capital base and finance viability-gap support primarily from investment returns.”
The bank expects the facilities to encourage investment from commercial banks, pension funds, insurance companies and other institutional investors.

The project will also support reforms aimed at strengthening public institutions responsible for identifying, preparing, procuring and supervising public-private partnership projects.
Its implementation will cover institutional development, project preparation, mobilisation of financing 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.
Describing the initiative, the World Bank said, “The proposed Nigeria INFRAGROW project is an institution-building and private capital mobilisation operation intended to expand sustainable infrastructure in Nigeria.”

However, the bank has classified the project's environmental and social risks as high, citing the possibility that investments in energy, transport and water infrastructure could result in land acquisition, community displacement, environmental damage and occupational hazards.