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

Nigeria has begun the financial advisory process for a $2 billion plan to deploy 90,000 kilometres of fibre-optic cable nationwide under the World Bank-backed BRIDGE Project.

The government must appoint a financial advisory firm to structure and manage funding, under terms agreed with the World Bank, which has approved $500 million in financing.

“The first selection process of a financial/transaction advisory firm is near completion,” a spokesperson for the Ministry of Communications, Innovation, and Digital Economy said.

The advisory firm will support a special purpose vehicle, or project company, that will oversee fibre deployment across all 774 local government areas. However, the project company has not yet been formed.

“Once the transaction advisory process is concluded, the SPV will be formed,” the spokesperson said, adding that deployment would begin after establishment. The government aims to break ground this year.

Under a financing agreement dated Jan. 20, 2026, the federal government will hold a 49% minority stake in a privately owned and managed project company. Private investors will retain operational control.

The agreement, signed with the International Development Association on Dec. 30, 2025, secures the $500 million concessional credit. It also defines governance rules, funding milestones, and phased disbursement linked to network rollout targets.

The BRIDGE Project, approved by the World Bank’s board on Oct. 8, 2025, aims to expand access to high-quality broadband in underserved regions. It targets 33 million Nigerians currently offline and will offer wholesale, open-access services to licensed telecom operators.

The project will roll out in phases. The first phase covers 30,000 kilometres and is expected to begin in early 2026, following preparatory work and procurement. Later phases will extend coverage nationwide, while maintaining the government’s stake below 49%.

The government will channel its participation through the Ministry of Finance Incorporated, which will represent state interests and exercise voting rights. Strategic oversight will come from the communications ministry, while a project unit will manage daily coordination.

Funding will be released in five tranches, starting with $150 million for initial equity. Further disbursements depend on meeting deployment milestones.

The project matters because it seeks to close Nigeria’s digital access gap, strengthen broadband infrastructure, and support growth in education, healthcare, and public services.