Nigeria takes 49% stake in World Bank-backed $2bn fibre project

Nigeria has begun the financial advisory process for its ambitious plan to deploy 90,000 kilometres of fibre-optic cable under the $2 billion Building Resilient Digital Infrastructure for Growth (BRIDGE) Project, supported by the World Bank.

As part of the agreement with the Bank, which has already approved $500 million in financing, the government is required to appoint a financial advisory firm to structure and manage the project’s funding.

“The first selection process of a financial/transaction advisory firm is near completion,” a spokesperson for the Ministry of Communications, Innovation, and Digital Economy told TechCabal. The transaction firm would provide financial advisory services to the special purpose vehicle (SPV) or project company, which would oversee the deployment of the 90,000km fibre across 774 local government areas in the country. 

The government will hold a 49% stake in a majority privately-owned and managed Project Company to be established to implement the initiative, according to a financing agreement released by the World Bank and dated January 20, 2026. According to the spokesperson, the SPV or project company has not been formed. 

“Once the transaction advisory process is concluded, the SPV will be formed,” the spokesperson said. “The government’s role is as a minority shareholder in the SPV. Deployment is the responsibility of the SPV’s management team and will commence after it’s been established. We are working towards breaking ground this year.”

Under the terms of the financing agreement signed with the International Development Association (IDA), the Federal Government of Nigeria will maintain a minority 49% stake in the company, while private investors retain operational control. 

The financing agreement is a critical foundation for the BRIDGE Project because it formally secures the $500 million concessional credit from IDA, setting out the rules, responsibilities, and milestones that govern how the project will be implemented. It defines the government’s 49% stake, ensures private investors maintain operational control, and establishes clear mechanisms for disbursing funds in phases tied to network deployment targets.

The BRIDGE Project, approved by the World Bank Group Board of Directors on October 8, 2025, is designed to expand access to high-quality broadband. It targets regions that have historically been left out of Nigeria’s digital economy, offering wholesale, open-access services to licenced telecommunications operators. The fibre project would target 33 million Nigerians who are currently offline across the 774 local government areas 

The project will be implemented in phases, with milestone-linked funding tranches, according to the World Bank agreement. The first phase, covering 30,000 kilometres of the planned network, is expected to roll out in early 2026 following preparatory activities and the completion of key procurements, including a transaction advisory service to guide the project company’s setup. Subsequent phases will extend coverage to additional regions, with the government’s shareholding carefully structured to not exceed 49%.

To manage the project, the government will channel its participation through the Ministry of Finance Incorporated (MOFI), which acts as the federal government’s investment arm. The agreement was signed on December 30, 2025. 

MOFI’s role includes representing government interests, exercising voting rights in line with the company’s governing documents, and ensuring that project objectives align with national priorities and World Bank requirements.

The $500 million credit from the IDA is structured as concessional financing, with a maximum commitment charge of 0.5% per annum on unwithdrawn funds. Repayment is scheduled to begin in October 2030, with semi-annual installments over 20 years.

Funding will be disbursed in five tranches, with the first $150 million going toward the company’s initial equity capitalisation. Subsequent tranches are contingent on the Project Company meeting specific network deployment milestones—5,000 km, 20,000 km, and 40,000 km, culminating in the launch of wholesale open-access services. 

According to the agreement, the government would transfer its equity financing to the project company’s dedicated account, ensuring smooth capital flow and alignment with the project’s timeline.

The Federal Ministry of Communications, Innovation, and Digital Economy will oversee strategic oversight, while the Federal Project Financial Management Department will handle financial management. A Project Implementation Unit (PIU) would be established to coordinate day-to-day activities, supported by a project management company responsible for procurement, monitoring, and evaluation, and adherence to environmental and social safeguards.

The BRIDGE Project incorporates significant environmental and social safeguards. The government and the Project Company are required to implement the Environmental and Social Commitment Plan (ESCP), which addresses risk management, grievance resolution, gender-based violence prevention, and community engagement. Regular reporting to the IDA will track compliance with these standards throughout the project.

The project will also provide technical assistance to government agencies to enhance the deployment of high-quality, climate-resilient broadband. The support aims to ensure that the new digital infrastructure strengthens public services, education, healthcare, and broader economic development across Nigeria.