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

According to the World Bank’s Initial Project Information Document obtained by The PUNCH, the proposed loan forms part of a broader $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 (NSIA) is expected to oversee the implementation of the project.

The document puts Nigeria’s annual infrastructure financing shortfall at approximately $100bn, describing the gap as a major obstacle to economic growth, fiscal sustainability, competitiveness and job creation.

The World Bank said addressing the challenge would require a coordinated strategy that combines project preparation, risk-mitigation measures and reforms across key sectors.

The proposed $500m loan will comprise $400m from the International Bank for Reconstruction and Development and another $100m from the International Development Association.

Beyond the World Bank facility, the wider financing arrangement is expected to draw contributions from the government, private investors and commercial lenders. It will also include $2.35bn in guarantees to help attract additional investment.

Under the proposed structure, INFRAGROW will operate through four subsidiaries responsible for project preparation, viability-gap funding, risk capital and credit guarantees.

Explaining the proposed funding arrangement, 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 is also expected to involve the International Finance Corporation as a potential co-investor, while the Multilateral Investment Guarantee Agency would provide political risk insurance.

If approved, the facility would form part of a broader effort to mobilise public and private financing for infrastructure development in Nigeria.