FG SEEKS FRESH $500M WORLD BANK LOAN DAYS BEFORE 2027 PRESIDENTIAL INAUGURATION

The Federal Government is seeking a fresh $500m World Bank loan to establish an infrastructure financing platform, with approval scheduled for May 25, 2027, just four days before Nigeria’s next presidential inauguration. 

According to the World Bank’s Initial Project Information Document obtained by The PUNCH, the loan is part of a $3.85bn initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs (INFRAGROW). 

The Federal Ministry of Finance is listed as the borrower, while the Nigeria Sovereign Investment Authority will implement the project. 

The document estimates Nigeria’s annual infrastructure financing gap at $100bn, describing it as “a binding constraint on growth, fiscal sustainability, competitiveness, and job creation.” 

The bank said closing the gap requires “an integrated approach” involving project preparation, risk-reduction measures and sectoral reforms. 

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

The wider financing structure will include government contributions, private investors and commercial lenders, alongside $2.35bn in guarantees. 

The platform will operate through four subsidiaries focusing on project preparation, viability-gap funding, risk capital and credit guarantees. 

Explaining its funding model, the document stated, “Under the proposed endowment model, the VGF would preserve its capital base and finance viability-gap support primarily from investment returns.” 

The World Bank described the initiative as “an institution-building and private capital mobilisation operation intended to expand sustainable infrastructure in Nigeria.” 

The project will also involve the International Finance Corporation as a prospective co-investor and the Multilateral Investment Guarantee Agency for political risk insurance.