Nigeria to Invest $460m World Bank Loan in Nationwide Fibre Infrastructure

Nigeria is set to invest $460 million, representing about 92 per cent of a $500 million World Bank loan, into the capitalisation of a proposed fibre infrastructure company that will deploy 90,000 kilometres of climate-resilient broadband fibre across the country.

The plan is detailed in the Financing Agreement for the Building Resilient Digital Infrastructure for Growth Project between the Federal Government of Nigeria and the International Development Association (IDA), the concessional lending arm of the World Bank.

Breakdown of the $500m World Bank Credit

Under the agreement, the World Bank approved a $500 million concessional credit to support Nigeria’s efforts to expand access to high-quality, climate-resilient broadband internet, particularly in unserved and underserved areas.

Of the total amount:

$460 million is earmarked for equity financing and capitalisation of a new Project Company that will lead the fibre rollout.
The remaining $40 million will be used for goods, works, consulting and non-consulting services, training, operating costs, and the refund of a preparation advance used to develop the project.

Structure of the Project Company

According to the agreement, the Project Company will be established as an independent, majority privately owned and managed special-purpose vehicle (SPV). Its core mandate includes:

Deployment of 90,000km of climate-resilient fibre infrastructure using a phased approach
Provision of wholesale, open-access services to licensed telecommunications operators
Management of related investments, preparatory activities, and transaction advisory services

The Federal Government will participate as a shareholder through Ministry of Finance Incorporated (MOFI), which manages government investment interests. However, the agreement caps the government’s equity stake at 49 per cent, ensuring private-sector majority ownership.

Disbursement Tied to Performance Milestones

The $460 million equity injection will be released in four tranches, each linked to specific operational milestones:

$150 million upon incorporation of the Project Company as a joint venture with World Bank-approved private partners
$100 million after adoption of approved fiduciary procedures and deployment of at least 5,000km of fibre
$100 million following completion of an additional 20,000km of network rollout
$110 million after the launch of wholesale open-access services and deployment of a further 40,000km, bringing total coverage to at least 65,000km

Each tranche must be transferred to the Project Company’s dedicated account within five working days, reinforcing the equity-based nature of the funding.

Oversight, Safeguards and Repayment Terms

The project will be implemented under the supervision of the Federal Ministry of Communications, Innovation and Digital Economy, with financial oversight from the Federal Ministry of Finance. A dedicated Project Implementation Unit will manage daily execution.

The agreement also places strong emphasis on environmental and social safeguards, including compliance with an Environmental and Social Commitment Plan and the establishment of a grievance redress mechanism for affected communities.

Repayment of the credit will begin in October 2030, with Nigeria repaying 2.5 per cent of the principal every six months until April 2050. The loan carries a concessional interest rate set at the reference rate plus a variable spread, minus 250 basis points.

Link to Nigeria’s Broader Broadband Expansion Plans

The World Bank approved the $500 million loan on October 6, 2025, as part of a broader effort to significantly expand broadband access nationwide. The total project cost is estimated at $1.6 billion, with the balance expected from private-sector investors.

The initiative aligns with Project BRIDGE, Nigeria’s ambitious $2 billion fibre-optic expansion programme, which aims to extend the country’s broadband network from 35,000km to over 125,000km. The project includes seven major fibre rings linking all six geopolitical zones, dozens of city and regional networks, and multiple edge data centres.

With the World Bank remaining Nigeria’s largest external creditor, the fibre investment underscores the growing role of digital infrastructure in the country’s long-term economic and connectivity strategy.