The Federal Government is seeking a fresh $500m loan from the World Bank to establish an infrastructure financing platform, with approval of the proposed facility scheduled for May 25, 2027, four days before the inauguration of Nigeria’s next president.
The proposed borrowing comes amid growing political activities ahead of the 2027 general elections, drawing attention to the timing of new financial commitments and their potential implications for the incoming administration.
According to the World Bank’s Initial Project Information Document, obtained by The PUNCH on Sunday, the facility is part of a broader $3.85bn infrastructure financing initiative designed to attract private investment into critical sectors of the Nigerian economy.
The document, prepared and updated on November 4, 2026, identifies the initiative as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs, also known as INFRAGROW.
The Federal Ministry of Finance is listed as the borrower, while the Nigeria Sovereign Investment Authority (NSIA) will serve as the implementing agency.
The World Bank has scheduled the project’s technical design review for January 21, 2027, with May 25, 2027, set as its estimated approval date.
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 approval in the final days of President Bola 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 gap at approximately $100bn, identifying inadequate investment and weak project preparation as major constraints to economic growth.
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 noted that the challenge went beyond a shortage of funds, pointing to difficulties in converting 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 to strengthen the operating environment.”
The proposed $500m World Bank facility comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association.
The wider $3.85bn financing initiative is expected to draw contributions from the government, private investors, commercial lenders and international financial institutions through equity investments, debt financing and guarantees.
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Under the proposed structure, the NSIA is expected to contribute $200m in equity as a founding shareholder, while private sector investors would provide another $200m.
Commercial debt financing is projected at $600m, alongside $100m in IDA payment guarantees and $2.25bn in guarantees from other international financial institutions.
The financing platform will operate through four independently governed subsidiaries designed to address different barriers to infrastructure investment.
The first, the Project Preparation Facility, will finance feasibility studies, transaction structuring, risk assessments and procurement support to help transform infrastructure proposals into investment-ready projects.
The second, the Viability Gap Fund, will provide financial support for economically important projects that cannot generate sufficient commercial returns while maintaining affordable tariffs or sustainable government payments.
The document explained, “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 long-term capital to infrastructure projects considered commercially viable but unable to attract investors willing to take on 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 arrangements are intended to encourage participation by 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 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 described the initiative as “an institution-building and private capital mobilisation operation intended to expand sustainable infrastructure in Nigeria.”
The project is also expected to involve the International Finance Corporation as a prospective co-investor, alongside the Multilateral Investment Guarantee Agency, which may provide political risk insurance.
However, the bank has classified the proposed project’s environmental and social risks as high, particularly because the financing platform could support major infrastructure developments in the energy, transport and water sectors.
It warned that such investments could involve land acquisition, community displacement, environmental damage, occupational hazards and other social consequences.