Nigeria plans to deploy $460m, representing about 92 per cent of a $500m World Bank loan, towards the capitalisation of a proposed fibre infrastructure company to roll out 90,000 kilometres of climate-resilient broadband fibre nationwide.

The plan is contained in the Financing Agreement for the Building Resilient Digital Infrastructure for Growth project signed between the Federal Government and the International Development Association, the concessional lending arm of the World Bank.

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

Out of the approved amount, $460m has been earmarked specifically for equity financing and capitalisation of a new Project Company that will be responsible for deploying the fibre network. The remaining $40m will be used to finance goods, works, consulting and non-consulting services, training, operating costs, and the refund of a preparation advance utilised in developing the project framework.

According to the financing document, the proposed Project Company will be established “as an independent, majority privately-owned and managed special purpose vehicle-joint venture with the objective of the deployment of 90,000 kilometres of climate-resilient fibre infrastructure following a phased approach, limited to provision of wholesale, open access services to licensed telecommunications operators, and management of associated investments, including the carrying out of preparatory activities and provision of transaction advisory services, and provision of equity financing in and capitalization of the Project Company.”

The Federal Government will hold equity in the company through the Ministry of Finance Incorporated, which manages the government’s investment interests. However, the agreement clearly limits government ownership to a maximum of 49 per cent, ensuring that the entity remains majority privately owned and managed.

The $460m equity contribution will be released in four tranches, each tied to defined operational and performance milestones. The first tranche of $150m will be disbursed once the Project Company is incorporated as a joint venture with private partners selected through a World Bank-approved process, and after its memorandum, articles of association and shareholding agreement receive approval.

A second tranche of $100m will be released only after the company adopts fiduciary and administrative procedures acceptable to the World Bank and completes the deployment of at least 5,000 kilometres of fibre. The third tranche of another $100m is linked to the completion of an additional 20,000 kilometres of fibre infrastructure.

The final tranche of $110m will be released once the company launches wholesale open-access services through a published reference offer and completes a further 40,000 kilometres of fibre deployment. This will bring the total network rollout to at least 65,000 kilometres before the last equity drawdown.

After the release of each tranche, the agreement mandates that the funds be transferred into the Project Company’s dedicated account within five working days, reinforcing the equity nature of the financing rather than conventional government expenditure.

Implementation of the project will be overseen by the Federal Ministry of Communications, Innovation and Digital Economy, while the Federal Ministry of Finance will receive semi-annual updates on project progress.

A dedicated Project Implementation Unit will handle daily execution of the project, with overall financial management assigned to the Federal Project Financial Management Department within the Office of the Accountant General of the Federation.

Beyond fibre deployment, the project also includes technical assistance for federal government agencies to enhance the use of high-quality broadband in targeted areas. Funding is also allocated for project management, monitoring and evaluation, environmental and social safeguards, grievance redress mechanisms and independent audits.

The agreement places significant emphasis on environmental and social compliance, requiring adherence to an Environmental and Social Commitment Plan. It further mandates the establishment of an accessible grievance mechanism for affected communities and strict reporting obligations to the World Bank.

Repayment of the concessional credit will commence in October 2030, with Nigeria required to repay 2.5 per cent of the principal every six months until April 2050. The loan carries a concessional interest charge calculated as the reference rate plus a variable spread, minus 250 basis points.

The PUNCH reported that the World Bank approved the $500m Building Resilient Digital Infrastructure for Growth loan for Nigeria on October 6, 2025, with the objective of significantly expanding broadband access across unserved and underserved areas of the country.

The total cost of the project is estimated at $1.6bn, with the World Bank contributing $500m through the International Development Association. The remaining funding is expected to come from private-sector sources.

In May 2024, The PUNCH reported that the Federal Government approved the establishment of a special-purpose vehicle to support the deployment of an additional 90,000 kilometres of fibre-optic cable to achieve universal internet access across Nigeria.

A special-purpose vehicle is a separate legal entity created to execute a specific project. In this case, the SPV will manage the fibre optics initiative, overseeing its implementation, financing and operations.

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, stated that the project would strengthen Nigeria’s national internet backbone and optimise the use of eight submarine cables already landed in the country.

In August 2025, Tijani also announced that Nigeria was moving closer to building one of the largest digital backbones in the developing world. He unveiled the technical design for Project BRIDGE, a $2bn fibre-optic expansion initiative aimed at extending Nigeria’s broadband network from 35,000 kilometres to over 125,000 kilometres.

The rollout plan for Project BRIDGE includes seven major fibre rings linking Nigeria’s six geopolitical zones with Lagos, alongside 37 city-level fibre loops, 77 regional networks and multiple edge data centres.

“Over the past two years, we have worked tirelessly on what is arguably the most ambitious and foundational digital infrastructure project in Nigeria’s history, Project BRIDGE,” Tijani said.

It was earlier disclosed that the implementation of Project BRIDGE would be carried out through a special-purpose vehicle, with the Federal Government holding a 51 per cent equity stake and private investors holding 49 per cent. However, the World Bank loan agreement limits government ownership in the Project Company to a maximum of 49 per cent.

In addition to the World Bank’s funding, the project has secured a $200m commitment from the African Development Bank, with additional investments anticipated from the European Investment Bank, the Islamic Development Bank and various private-sector investors.

The BRIDGE loan further expands Nigeria’s portfolio of World Bank-supported programmes. As of June 30, 2025, Nigeria’s external debt stood at $46.98bn, according to data from the Debt Management Office.

The World Bank Group remains Nigeria’s largest single creditor, accounting for $19.39bn of the total external debt. This includes $18.04bn from the International Development Association and $1.35bn from the International Bank for Reconstruction and Development, representing 41.3 per cent of Nigeria’s total external debt and highlighting the bank’s dominant role in financing the country’s development initiatives.