FG Seeks Fresh $500 Million World Bank Loan for Infrastructure Development

The Federal Government is seeking a fresh $500 million loan from the World Bank to establish an infrastructure financing platform aimed at attracting private investment into Nigeria’s economy.

According to a report by The Punch, the proposed facility is part of a wider $3.85 billion infrastructure financing initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW).

The World Bank’s initial project information document identifies the Federal Ministry of Finance as the borrower, while the Nigeria Sovereign Investment Authority will serve as the implementing agency.

The proposed $500 million financing comprises $400 million from the International Bank for Reconstruction and Development and $100 million from the International Development Association.

The wider initiative is expected to mobilize funding from government institutions, private investors, commercial lenders and international financial organisations.

The World Bank estimates that Nigeria faces an annual infrastructure financing gap of approximately $100 billion, identifying inadequate investment and weak project preparation as major obstacles to economic development.

The proposed platform will focus on improving project preparation, providing financial support for viable infrastructure projects and offering guarantees to encourage private investors.

The project is expected to support investments in important sectors, including energy, transportation and water infrastructure.

However, the proposed loan has not yet received approval. The World Bank’s document schedules the project for a technical design review in January 2027, with an estimated approval date of May 25, 2027.

The proposed approval date falls four days before Nigeria’s next presidential inauguration, scheduled for May 29, 2027.

The development has brought renewed attention to government borrowing, infrastructure financing and the country’s long-term debt commitments.

Source: The Punch Newspapers, November 9, 2026.

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