Nigeria is seeking a $500 million loan from the World Bank to establish a $3.85 billion infrastructure financing platform aimed at attracting private investment into critical sectors, with the proposed approval date falling four days before the country’s 2027 presidential inauguration.
According to the World Bank’s Initial Project Information Document, prepared and updated on November 4, 2026, the proposed facility will form part of the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs, known as INFRAGROW.
The document, obtained by The PUNCH and reported by the newspaper on November 9, identifies the Federal Ministry of Finance as the borrower and the Nigeria Sovereign Investment Authority (NSIA) as the implementing agency.
The proposed $500 million facility comprises $400 million from the International Bank for Reconstruction and Development (IBRD) and $100 million from the International Development Association (IDA).
The World Bank document outlines a wider financing structure of $3.85 billion, combining the proposed loan with equity contributions, commercial borrowing and guarantees intended to attract additional private capital.
Under the arrangement, the NSIA is expected to contribute $200 million in equity as a founding shareholder, while private investors will provide another $200 million. Commercial lenders are projected to contribute $600 million.
The remaining $2.35 billion will come through guarantees, comprising $100 million in IDA payment guarantees and $2.25 billion from other international financial institutions.
According to the World Bank, the platform is designed to address Nigeria’s estimated $100 billion annual infrastructure financing gap, which the institution identifies as a major constraint on economic growth, fiscal sustainability, competitiveness and job creation.
The bank explained that the challenge goes beyond insufficient funding to the difficulty of converting available capital into commercially viable infrastructure projects.
It said the proposed intervention would combine project preparation, risk-reduction instruments and sectoral reforms to improve the investment environment and encourage private-sector participation.
The platform is expected to operate through four specialised facilities.
The Project Preparation Facility will finance feasibility studies, risk assessments, transaction structuring and procurement support to make infrastructure projects investment-ready.
The Viability Gap Fund will support economically important projects that cannot generate sufficient commercial returns while maintaining affordable tariffs or sustainable government payments.
The Risk Capital Facility will provide equity and patient capital to projects that are commercially viable but struggle to attract investors, while the Credit Guarantee Vehicle will provide protection against specified defaults, government payment failures and political risks.
In an analysis published on November 9, financial analyst Kalu Aja wrote for Nairametrics that the structure was designed to use a relatively small public financing contribution to mobilise substantially larger private investments.
Aja identified commercial banks, pension funds, insurance companies and other institutional investors as potential sources of capital for the platform. He also highlighted the importance of transparent governance and disclosure of government-backed guarantees to prevent contingent liabilities from becoming unexpected public debt.
However, the proposed borrowing has attracted political criticism over its timing.
The World Bank’s project timetable, as reported by The PUNCH on November 9, schedules a technical design review for January 21, 2027, while May 25, 2027, is listed as the estimated approval date.
The date falls four days before Nigeria’s scheduled presidential inauguration on May 29, 2027, raising concerns about the possibility of the outgoing administration committing the country to additional borrowing shortly before the transfer of power.
Former Vice President Atiku Abubakar called on the World Bank to reject the proposed facility, arguing that the Tinubu administration should not impose fresh debt obligations on its successor shortly before leaving office.
In a statement issued on November 10 by Phrank Shaibu, Director of Strategic Communication of the African Democratic Congress Presidential Campaign Council, Atiku described the proposed borrowing as an attempt to constrain the incoming administration.
According to a report by The Guardian on November 10, Atiku argued that Nigerians deserved full disclosure of the loan’s terms, risks and repayment obligations before any approval.
He also urged the World Bank not to approve the facility on the proposed timetable, insisting that an outgoing administration should not make financial commitments that would extend into the tenure of its successor.
Atiku further declared that his proposed administration would not begin its tenure by taking another loan.
The proposed facility has not received World Bank approval. The May 25, 2027 date remains an estimate and is subject to change. Approval would also not automatically mean immediate disbursement or implementation.
