Nigeria is set to invest $460 million from a $500 million concessional facility approved by the World Bank to establish and capitalise a new fibre infrastructure company tasked with rolling out 90,000 kilometres of climate-resilient broadband fibre across the country.
Details of the investment are contained in the Financing Agreement for the Building Resilient Digital Infrastructure for Growth (BRIDGE) project signed between the Federal Government of Nigeria and the International Development Association (IDA), the World Bank’s concessional lending arm.
The World Bank facility was approved to support Nigeria’s long-term objective of expanding reliable, high-capacity broadband connectivity, particularly in areas that are currently unserved or underserved. Of the total $500 million credit, $460 million—representing about 92 per cent of the facility—has been designated as equity financing for a newly proposed Project Company that will lead the nationwide fibre rollout.
The remaining $40 million will be applied to ancillary project costs, including procurement of goods and works, consulting and non-consulting services, training programmes, operational expenses, and reimbursement of a preparation advance used in developing the project’s technical and financial framework.
According to the agreement, the Project Company will be established as an independent special purpose vehicle structured as a joint venture, with majority private-sector ownership and management. Its mandate includes the phased deployment of 90,000 kilometres of climate-resilient fibre infrastructure, provision of wholesale open-access services exclusively to licensed telecommunications operators, and management of associated investments.
The company will also be responsible for preparatory activities, transaction advisory services, and mobilisation of additional private capital to support the project’s long-term sustainability.
While the Federal Government will participate as a shareholder through the Ministry of Finance Incorporated—its investment holding entity—the agreement places a strict ceiling on government ownership. Public-sector equity in the Project Company must not exceed 49 per cent, ensuring continued private-sector control and operational independence.
The $460 million equity investment will be released in four tranches, each tied to clearly defined governance, operational, and deployment milestones. The first tranche, valued at $150 million, will become available once the Project Company is formally incorporated as a joint venture with private partners selected through a World Bank-approved process, and once its constitutional documents and shareholding arrangements are finalised.
A second tranche of $100 million will be disbursed only after the company adopts fiduciary, administrative, and governance systems acceptable to the lender, and successfully completes at least 5,000 kilometres of fibre deployment. The third tranche, also valued at $100 million, is contingent on the construction of an additional 20,000 kilometres of network infrastructure.
The final tranche of $110 million will be released after the Project Company launches wholesale open-access services under a published reference offer and completes a further 40,000 kilometres of fibre rollout. This would bring total deployed infrastructure to a minimum of 65,000 kilometres before the last equity drawdown.
Once each tranche is released, the agreement requires the Federal Government to transfer the funds into the Project Company’s designated account within five working days, reinforcing the equity-based nature of the financing rather than traditional public 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 progress reports. A dedicated Project Implementation Unit will handle day-to-day execution, with financial management coordinated through the Federal Project Financial Management Department in the Office of the Accountant General of the Federation.
Beyond physical infrastructure deployment, the BRIDGE project includes technical assistance to federal agencies to accelerate the adoption of high-quality broadband in targeted regions. It also provides funding for project management, monitoring and evaluation, environmental and social safeguards, grievance redress mechanisms, and independent audits.
Environmental and social compliance is a core component of the agreement. The project must adhere to a comprehensive Environmental and Social Commitment Plan, establish accessible grievance channels for affected communities, and meet strict reporting requirements to the World Bank.
Repayment of the IDA credit is scheduled to begin in October 2030, with Nigeria repaying 2.5 per cent of the principal every six months until April 2050. The facility carries a concessional interest rate calculated as the reference rate plus a variable spread, less 250 basis points.
The World Bank formally approved the $500 million BRIDGE facility on October 6, 2025, as part of a broader effort to expand Nigeria’s broadband backbone. The total project cost is estimated at $1.6 billion, with private-sector investors expected to provide the balance of funding.
The Federal Government has already approved the creation of a special purpose vehicle to support the deployment of the additional 90,000 kilometres of fibre-optic infrastructure, aimed at achieving universal internet access across the country.
Communications, Innovation and Digital Economy Minister Bosun Tijani has described the initiative as a transformational investment that will strengthen Nigeria’s national broadband backbone and optimise the use of eight submarine cables already landed on its shores.
In August 2025, Tijani unveiled the technical design for Project BRIDGE, a $2 billion fibre-optic expansion programme intended to extend Nigeria’s fibre network from about 35,000 kilometres to more than 125,000 kilometres. The plan includes seven major fibre rings linking Nigeria’s six geopolitical zones to Lagos, alongside 37 city fibre loops, 77 regional networks, and multiple edge data centres.
Earlier disclosures indicated that the BRIDGE SPV would be structured with a 51 per cent federal government stake. However, the World Bank financing agreement limits public ownership to 49 per cent.
Beyond World Bank support, the project has attracted additional funding commitments, including $200 million from the African Development Bank, with further participation expected from the European Investment Bank, the Islamic Development Bank, and private-sector investors.
The BRIDGE loan adds to Nigeria’s expanding portfolio of World Bank-supported initiatives. As of June 30, 2025, Nigeria’s external debt stood at $46.98 billion, according to the Debt Management Office. The World Bank Group remains the country’s largest single creditor, accounting for $19.39 billion—representing over 41 per cent of total external debt.
