Nigeria–IFC Infrastructure Deal Explained: How “Bankable Projects” Can Unlock Private Capital

Nigeria’s Federal Government has signed a cooperation agreement with the International Finance Corporation to speed up the delivery of bankable infrastructure and attract more private money into projects the country urgently needs. 

The agreement was signed in Abuja and linked to a plan to improve how projects are selected, prepared, structured and delivered so investors can fund them with fewer surprises.

At the signing, key economic officials were present, including Abubakar Atiku Bagudu, Wale Edun and Ali Pate, alongside senior executives from the World Bank Group and IFC.

The real fight is not funding It is project quality

Nigeria has no shortage of infrastructure needs. But private investors do not fund needs. They fund projects that can repay money and manage risk. That is why the word bankable is the centre of this deal. It is a signal that government wants to move from big announcements to investment-ready projects that can reach financial close.

Bagudu explained the point in plain terms. Nigeria needs properly prepared projects so investors can have confidence and clarity on what they are funding, across areas like rail, energy, water security, healthcare and digital infrastructure.

What does bankable mean 

A bankable project is not one that sounds important. It is one that can be financed.

Investors typically want to see a clear way the project will earn money or a credible government support plan if user fees alone will not cover costs. 

They want clean legal structure and procurement, realistic costs and timelines, enforceable contracts, and a clear sharing of risks so that unexpected problems do not automatically become investor losses. This is the practical work that separates a proposal from a project that banks and long-term funds can back.

This is also where IFC is known to play. Through its transaction advisory work, IFC helps governments structure public-private partnerships and design projects in ways that private capital can actually fund.

Nigeria is trying to attract more long-term capital, but investors are cautious. They look for stable rules, predictable processes, and proof that projects can move from paperwork to execution. That is why the agreement focuses on project preparation and delivery, not just raising money.

IFC officials described the deal as the outcome of long engagement with government. The IFC Africa vice president Ethiopis Tafara said it followed a year-long collaboration to build a shared approach for Nigeria’s infrastructure pipeline.

IFC regional director Dahlia Khalifa also framed it as a step toward stronger public-private partnership execution that can attract private investment.

What investors will watch next

The credibility test will come fast. Investors will ask which specific projects enter the prepared pipeline, how transparent the procurement is, and whether contract terms are strong enough to survive political changes and disputes.

They will also watch whether projects reach financial close without delays and whether early projects deliver on time and on budget. In infrastructure, the signing ceremony is the easy part.