Nigeria, IFC seal deal to fast-track private investment in infrastructure

The Federal Government has taken steps to close Nigeria’s wide infrastructure gap by signing a cooperation agreement with the International Finance Corporation (IFC), a member of the World Bank Group.

The deal is aimed at attracting private investment and speeding up the delivery of major infrastructure projects across the country.

The agreement, signed in Abuja on Tuesday through the Federal Ministry of Budget and Economic Planning, is designed to help Nigeria prepare projects in a way that makes them attractive and clear for private investors, especially in key sectors such as transport, energy, water, healthcare, and digital services.

Speaking at the signing ceremony, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, said the government recognises that public funds alone cannot meet the country’s huge infrastructure needs. He explained that the focus now is on developing projects that are properly planned and ready for investment, so private capital can come in with confidence.

“Our needs in rail, energy, water security, healthcare, and digital infrastructure are extensive. This agreement aims to ensure that we prepare projects adequately so investors can have confidence and clarity on where to allocate capital,” Bagudu said.

He pointed to Nigeria’s early experience in the mobile phone industry as proof of the country’s ability to absorb large-scale investments. 

According to him, when mobile services were first introduced, investors struggled to imagine a market of 500,000 subscribers, but today Nigeria’s digital economy serves more than 100 million users.

Bagudu added that the cooperation deal supports President Bola Ahmed Tinubu’s reform drive, which he said has involved tough policy choices to stabilise the economy, make government policies more predictable, and encourage the private sector to invest.

He also noted that Nigeria’s long-term development plan, known as Agenda 2050, and the country’s constitution both recognise the private sector as a key driver of growth, with government providing the right policies and support.

The IFC’s, Vice President for Africa, Mr Ethiopis Tafara, described the agreement as the result of a year of close work between both sides and a shared vision for Nigeria’s future.

“This is not just about signing a document. It is about establishing the groundwork for projects that generate employment, attract investment, and improve the daily lives of Nigerians,” Tafara said.

He explained that the partnership would help improve how government budgets and projects are prepared by making it easier to identify, design, and deliver projects that are ready for investors in sectors such as transport, energy, digital infrastructure, and water.

Tafara added that the World Bank Group would also support the effort with financing and guarantee tools that can help both the federal and state governments reduce risks and attract more private investors.

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“Nigeria’s infrastructure gap cannot be closed by public budgets alone. Public-private partnerships are vital. IFC is ready to assist the government in developing a strong pipeline of projects across key sectors,” he said.

Also speaking at the event, the IFC Regional Director for Central Africa and Anglophone West Africa, Ms Dahlia Khalifa, said the agreement represents an important moment for Nigeria’s development journey.

She said the country’s ongoing reforms and large, youthful population present huge opportunities, but these can only be fully realised with strong infrastructure, well-prepared projects, and effective cooperation between government and private investors.

“That is what tonight is about—creating the framework for partnerships to thrive and deliver shared prosperity for all Nigerians,” Khalifa said.

She disclosed that IFC has been active in Nigeria for more than 60 years and has mobilised about $20 billion in investments over the past five years in areas such as energy, digital infrastructure, agriculture, manufacturing, and financial services, including trade finance.

Khalifa also revealed that IFC’s staff strength in Nigeria has grown four times over the last two years, showing the organisation’s increasing focus on the country.

She praised the Federal Ministry of Budget and Economic Planning for its role in coordinating national economic priorities and improving how major projects are developed.

According to her, the cooperation agreement will help in identifying and delivering major projects in transportation, energy, and support for small and medium-sized businesses.

“This is the kind of collaboration that turns ambition into achievement. Together, we will build projects that connect markets, power industries, and unlock the full potential of the Nigerian people,” she said.

The agreement signals the Federal Government’s intention to work more closely with development finance institutions and the private sector to mobilise investment, create jobs, and promote sustainable growth across Nigeria.