The World Bank approved a $500 million loan Tuesday to fund Nigeria’s Building Resilient Digital Infrastructure for Growth (BRIDGE) project, a six-year plan to lay 90,000 kilometers of climate-resilient fiber optic cable and connect every one of the country’s 774 local government headquarters.
Unlike traditional infrastructure loans, the International Development Association (IDA) credit will be released only when Nigeria and its private partners hit verifiable milestones, a “pay-for-results” mechanism the Bank says will ensure accountability in Africa’s largest economy.
Nigeria’s fixed broadband penetration stands at just 8.4 percent compared with more than 30 percent in Senegal. Market failure in rural and low-income areas means private operators won’t invest without public de-risking. BRIDGE uses taxpayer money to crowd in private capital under strict governance rules.
Disbursements begin in 2026 with a modest $6 million tranche, followed by $155 million in 2027 once a private-sector-led Special Purpose Vehicle (SPV) is incorporated through competitive bidding.
The Bank must sign off on the SPV’s founding documents and confirm government ownership stays below 50 percent aligning with its maximizing finance for development strategy.
The 2027 payout also requires the SPV to complete 5,000 km of fiber to technical specifications, proving operational and fiduciary capacity.
Two $105 million tranches in 2028 and 2029 hinge on an additional 20,000 km, pushing the network past 25,000 km and signaling full-scale rollout.
A $115 million slice in 2030 unlocks after another 40,000 km, while the final $14 million in 2031 is contingent on the SPV launching wholesale open-access broadband services.
The government must publish a reference offer with transparent pricing and non-discriminatory terms, allowing telecoms and ISPs to lease capacity at lower cost. Median mobile download speeds in Nigeria are 18 Mbps; fixed broadband averages 23.2 Mbps.
The Bank believes the new backbone will slash wholesale prices, boost cloud adoption, e-learning, and digital finance, and narrow the gap with regional peers.
President Bola Tinubu’s administration welcomed the approval, calling BRIDGE “a cornerstone of our digital transformation agenda.”
Officials privately acknowledge the conditions are tougher than past programs but say the milestone structure reduces corruption risks that plagued earlier fiber initiatives.
Jide Awe, tech analyst sees the model as a template for other African nations, stating, “If Nigeria delivers, it proves public funds can catalyze private investment without fiscal leakage.”
Construction is slated to start in Q1 2026, with the SPV expected to raise matching equity and debt once the first milestones are met. The World Bank estimates the full network will serve 125 million people and add 1.5 percentage points to annual GDP growth by 2031.
For now, the clock is ticking as Nigeria has until December 2026 to form the SPV and break ground on the first 5,000 km, or risk forfeiting the largest single-year payout.