The World Bank Group is targeting US$5.79 billion in private financing for Nigeria in fiscal year 2026, with investments spanning agriculture, small businesses and digital infrastructure aimed at strengthening economic growth and supporting employment.

The initiative brings together the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), using policy reforms, investment financing and risk guarantees to attract private capital into key sectors of Nigeria’s economy.

According to the World Bank Group, the approach builds on reforms introduced since mid-2023 to improve foreign-exchange management, strengthen public finances and create more predictable conditions for investors. Further measures are intended to deepen capital markets, expand digital trade and encourage greater private participation in electricity and other sectors.

Agriculture and small-business financing form important parts of the strategy, with programmes designed to improve farmers’ access to inputs and markets while helping businesses secure the capital needed to expand.

Agricultural investment targets one million smallholder farmers

Through its Agricultural Value Chains for Growth (AGROW) Project, the World Bank Group aims to reach one million smallholder farmers, including women and young people, by strengthening seed and fertiliser systems, improving digital agricultural platforms and expanding market access.

The project is expected to mobilise approximately US$220 million from agribusiness companies and a further US$22 million from certified seed producers.

The initiative seeks to address constraints affecting agricultural productivity, including limited access to quality seeds, affordable fertiliser, digital services and reliable markets. Improving these areas could help farmers increase production, strengthen incomes and reduce investment risks across agricultural value chains.

The programme forms part of the broader AgriConnect approach, which combines public-sector reforms and investment platforms with private financing to improve agricultural production and commercial opportunities.

The IFC is also supporting domestic fertiliser production through financing arrangements involving Dangote Industries Limited and Indorama Fertilizer. The World Bank Group reports that these investments are intended to improve access to agricultural inputs for more than 10 million smallholder farmers.

The two fertiliser projects have a combined production capacity of 6.8 million metric tonnes annually. The IFC helped mobilise US$1.02 billion for Dangote through refinancing and financing involving development institutions and commercial lenders, alongside US$282.5 million for Indorama through syndicated financing.

Expanding domestic fertiliser production could reduce reliance on imported inputs and strengthen supply availability. However, the benefits for farmers will depend partly on affordability, distribution networks and access to finance.

MSME programme targets 850,000 jobs

The World Bank Group’s Fostering Inclusive Finance for MSMEs in Nigeria programme (FINCLUDE) is designed to expand access to financing for more than 250,000 micro, small and medium-sized enterprises.

A US$500 million financing package from the International Bank for Reconstruction and Development and the International Development Association combines funding and risk-sharing mechanisms intended to encourage financial institutions and other investors to lend to underserved businesses.

The programme is expected to mobilise nearly US$1.89 billion in private financing and support an estimated 850,000 direct and indirect jobs. Women-led businesses are targeted to receive 30% of the financing.

Improved access to capital could help businesses purchase equipment, increase production, hire workers and expand into new markets. The programme’s employment impact will depend on how effectively financing reaches eligible enterprises and translates into sustainable business growth.

Digital infrastructure attracts further investment

Digital connectivity is another major component of the World Bank Group’s strategy. The Building Resilient Digital Infrastructure for Growth (BRIDGE) Project will use a public-private partnership model to develop a nationwide open-access fibre-optic network.

The first investor-selection round is expected to mobilise at least US$156 million in private equity, while subsequent financing rounds could unlock up to US$1.1 billion in private investment by 2030.

The project aims to expand affordable broadband access to an additional 58 million people, increasing coverage from 92 million people in 2025 to 150 million by 2030. Its intended beneficiaries include young people, women, public schools, healthcare facilities and local government offices.

Separately, the IFC acted as an anchor investor in a US$1.2 billion bond issuance by IHS Towers, helping mobilise more than US$1.1 billion from private investors to support telecommunications infrastructure.

Private capital central to Nigeria’s growth strategy

The World Bank Group’s approach combines policy reform, development financing and private-sector investment to reduce risks and make projects more attractive to commercial investors. While the World Bank supports reforms and development projects, the IFC structures investments and mobilises additional financing, while MIGA provides guarantees that can help mitigate investor risks.

Together, the institutions aim to use public resources to attract larger pools of private capital into sectors with significant development needs.

The targeted US$5.79 billion in private financing for fiscal year 2026 represents an effort to address gaps in agricultural productivity, business financing and digital infrastructure.

For Nigeria’s agricultural sector, the AGROW programme and fertiliser investments could strengthen input supply, improve access to markets and support smallholder farmers. Meanwhile, MSME financing could help agribusinesses and other enterprises expand operations and create employment.

The overall impact will depend on implementation, the availability of financing to intended beneficiaries and whether investments deliver measurable improvements in productivity, business growth and household livelihoods.