FG SEEKS WORLD BANK GUARANTEES TO ATTRACT MORE FUNDING FOR NIGERIA’S INFRASTRUCTURE

By NaijaParrot October 13, 2026 

 ABUJA, NIGERIA —

The Federal Government has opened discussions with the World Bank Group to secure additional financing support for infrastructure development, with particular attention to Nigeria’s power sector. The move is aimed at attracting more private investment into critical infrastructure projects while reducing pressure on government finances. The development was disclosed in a statement issued on Monday by Efe Ovuakporie, Head of Media at the Federal Ministry of Finance, following a meeting involving Nigeria’s Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele; Central Bank of Nigeria Governor, Olayemi Cardoso; and World Bank Group President, Ajay Banga.

According to the report, discussions focused on expanding Nigeria’s access to the World Bank Group’s guarantee instruments. These guarantees can help reduce investment risks and encourage private investors and lenders to provide funding for major projects that might otherwise struggle to attract sufficient capital. The approach could support infrastructure development without relying entirely on direct government spending or conventional borrowing. The power sector is a particular focus because reliable electricity remains essential to business operations, industrial growth, job creation and improved living standards. 

 The Federal Government’s engagement with the World Bank comes amid efforts to attract private capital into sectors that require substantial investment. The World Bank Group comprises institutions that support development through financing, investment and risk-mitigation instruments. Its guarantees can help make projects more attractive to investors by addressing specific financial and political risks. In a related development, the World Bank Group said it was helping mobilise up to $5.79 billion in private financing for Nigeria in the 2026 fiscal year, targeting areas including digital infrastructure, agriculture and access to finance. 

 The government’s latest discussions come at a time when Nigeria is pursuing additional financing for development projects while facing concerns about rising public debt. In September, reports indicated that the Federal Government was discussing three proposed World Bank financing facilities worth a combined $1.5 billion. The proposed facilities target climate resilience, social protection and early childhood development, and are separate from the latest discussions on infrastructure guarantees. Guarantees designed to attract private investment are not necessarily the same as direct loans to the government. However, their financial implications depend on the terms agreed and the risks covered. 

 If the discussions lead to successful financing arrangements and effective project delivery, the initiative could help improve electricity infrastructure, support businesses, attract investment and create employment opportunities. However, the eventual impact will depend on the projects selected, the terms of the arrangements, investor participation and the government’s ability to ensure transparency and accountability. As of the latest report, the discussions are ongoing; no final agreement or specific new funding amount was announced in the report. 

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