Nigeria plans to channel $460 million of a $500 million World Bank concessional loan into capitalising a new fibre infrastructure company, set to deploy 90,000 kilometres of climate-resilient broadband across the country. The initiative forms part of the Building Resilient Digital Infrastructure for Growth project, aimed at expanding high-quality internet access in underserved areas.
The proposed Project Company will operate as a majority privately-owned special purpose vehicle (SPV), with the Federal Government holding no more than 49 per cent equity through the Ministry of Finance Incorporated. The equity financing is structured in four tranches, tied to specific operational and performance milestones. The first tranche of $150 million will be released after company incorporation and shareholder agreements, while subsequent tranches will follow fibre rollout progress and the launch of wholesale open-access services.
The remaining $40 million of the World Bank loan will cover goods, works, consulting services, training, operating costs, and refund of a preparation advance. Implementation will be overseen by the Federal Ministry of Communications, Innovation and Digital Economy, with day-to-day management handled by a dedicated Project Implementation Unit.
Project BRIDGE, as the initiative is known, is part of Nigeria’s broader digital expansion strategy. It will optimise existing submarine cables, connect six geopolitical zones through seven main fibre rings, and establish 37 city loops, 77 regional networks, and multiple edge data centres. The total project cost is estimated at $1.6 billion, with additional funding expected from private-sector investors, the African Development Bank, the European Investment Bank, and the Islamic Development Bank.
Minister of Communications, Bosun Tijani, stated the project would strengthen Nigeria’s digital backbone and bring the country closer to building one of the largest broadband networks in the developing world. Loan repayment will begin in October 2030 and continue until April 2050 at concessional rates.
Leave a comment