FG, IFC Sign Cooperation Agreement on Bankable Infrastructure, Private Investment

FG, IFC Sign Cooperation Agreement on Bankable Infrastructure, Private Investment

The Federal Government, through the Federal Ministry of Budget and Economic Planning, has signed a cooperation agreement with the International Finance Corporation (IFC), a member of the World Bank Group, to enhance project preparation, mobilise private capital, and speed up the delivery of bankable infrastructure projects vital to Nigeria’s economic transformation.

The signing ceremony, held in Abujaon Tuesday, was attended by the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of Health and Coordinating Minister of Social Welfare, Dr Ali Pate; senior government officials; and top executives of the World Bank Group and IFC.

Speaking at the event, Bagudu described the agreement as a strategic move to ensure Nigeria’s extensive infrastructure needs are met through well-prepared, investment-ready projects capable of attracting private capital.

He observed that Nigeria’s experience with early mobile telephony investments—where initial investors struggled to envisage a market of 500,000 subscribers, compared to today’s digital economy of over 100 million users—clearly demonstrates the country’s vast absorptive capacity.

Nigeria is a country brimming with opportunities. With a population of over 230 million, 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,” the Minister said.

Bagudu further emphasised that the agreement aligns with President Bola Ahmed Tinubu’s reform agenda, which has prioritised bold, sometimes difficult, policy choices to stabilise the macroeconomic environment, ensure predictability, and attract private-sector investment.

He added that Nigeria’s Agenda 2050 and constitutional framework clearly establish the country as a market-driven economy in which private-sector leadership, supported by public policy, is vital to growth and development.

Delivering remarks on behalf of IFC, the Vice President for Africa, Mr Ethiopis Tafara, described the agreement as the result of a year of close collaboration and a shared vision for Nigeria’s future.

“This is not just about signing a document. It is about establishing the groundwork for transformative projects aligned with President Tinubu’s Renewed Hope Agenda—initiatives that generate employment, attract investment, and enhance lives,” Tafara said.

He stated that the agreement will strengthen budget and project preparation by facilitating the identification, structuring, and delivery of high-impact, investment-ready projects across key sectors.

According to him, this effort is further supported by World Bank Group financing and guarantee instruments that assist both federal and state governments.

Nigeria’s infrastructure gap cannot be closed by public budgets alone. Public-private partnerships are not optional; they are vital. IFC is ready to assist the government in developing a credible pipeline of projects across transport, energy, digital infrastructure, water, and other priority sectors,” he added.

Also speaking at the ceremony, Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa, said the agreement marks a milestone not only for the institutions involved but also for Nigeria’s broader development journey.

She observed that Nigeria’s bold reforms, along with its youthful and dynamic population, offer enormous opportunities that can only be realised through robust infrastructure, bankable projects, and effective partnerships between public vision and private capital.

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

She reaffirmed IFC’s long-standing commitment to Nigeria, where it has operated for over six decades, emphasising that IFC has mobilised approximately US$20 billion in investments across energy, digital infrastructure, agriculture, manufacturing, and financial services, including trade finance, over the past five years.

She also revealed that IFC’s staff presence in Nigeria has quadrupled over the past two years, reflecting its increasing engagement.

Khalifa praised the Federal Ministry of Budget and Economic Planning for its key role in coordinating Nigeria’s economic priorities and enhancing project development processes.

She mentioned that the cooperation agreement would facilitate the identification, structuring, and delivery of transformative projects in transportation, energy, and support for small and medium-sized enterprises.

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

The Cooperation Agreement highlights the Federal Government’s commitment to deepen collaboration with development finance institutions, strengthen public-private partnerships, and mobilise private capital to promote sustainable growth, job creation, and shared prosperity across Nigeria.