IFC bets on manufacturing, tourism, others for jobs in $2.1bn push

The International Finance Corporation (IFC) is wagering its $2.1 billion investment pipeline on manufacturing, tourism and other job-rich sectors in Nigeria, aiming to accelerate private-sector growth and expand employment as Africa’s top crude producer works to translate reform gains into broader prosperity.

Christian Mulamula, IFC’s country head for Nigeria, said the lender will prioritise clean energy, industrial production, agriculture and tourism in 2026 as it deepens support for sectors with the highest job-creation potential.

“Clean energy will continue to grow, especially under DARES with more mini-grid investments,” he said in an exclusive interview with BusinessDay.

Read also: How a Manufacturing Revival Could Boost National Progress

“Manufacturing will also expand because manufacturing equals jobs. Tourism presents strong opportunities that Nigeria has not fully explored.”

Agriculture, he added, remains a central pillar of the IFC’s plans. “It is the backbone of African economies and helps Nigeria diversify away from crude oil. We invested in Johnvents, a cocoa processor, and we want to expand such opportunities.”

Nigerians need more decent jobs now than ever after strings of reforms embarked since 2023 have crushed spending power and pushed no fewer than 129 million of its citizens into poverty.

Mulamula said the institution’s push is shaped by a demographic reality: Africa’s youth population is rising faster than its job creation capacity, especially as Nigeria is expected to add 130 million people to its population, putting the numbers at approximately 360 million, according to the World Bank.

“We see 12 million youths entering the labour market every year, but we are creating only about three million jobs annually. That leaves a deficit of roughly nine million jobs each year,” he said. “This is why jobs sit at the heart of our development strategy. Jobs give dignity, they generate income, and they move people out of poverty.”

To address this, the IFC is anchoring its Nigeria programme on three pillars: building foundational infrastructure such as power, ports and skills; supporting regulatory reforms that unlock private investment; and mobilising capital, especially from private investors. “The World Bank Group cannot solve these challenges alone,” he said.

Mulamula highlighted several 2025 investments that demonstrate the approach. A $5 million revolving facility to Husk Power Systems, a mini-grid operator, is helping to deliver reliable electricity to rural SMEs and women-led enterprises—sectors that struggle the most with energy insecurity.

“Electricity is the number one complaint of Nigerians,” he said. “Husk goes directly to that challenge.”

A $50 million investment in the Lagos Free Zone is expected to catalyse manufacturing growth, backed by port infrastructure that improves the movement of goods. The IFC estimates the project could generate about 30,000 direct and indirect jobs. Another $50 million financing round for Mohinani Plastics supports recycling operations and climate-aligned manufacturing.

Read also: Nigeria manufacturing grows 1.25% in Q3 amid easing inflationary pressure

Mulamula said FX volatility remains a concern for investors but noted that recent reforms, including phasing out fuel subsidies and floating the naira, have improved sentiment.

“The currency has moved from around N1700/$ to the mid-N1400s/$, and we see increasing investor interest,” he said. The IFC, he added, often structures financing in local currency to reduce exposure in volatile sectors.

As Nigeria works through its reform cycle, the IFC plans to deepen investments in mini-grids, manufacturing, agriculture, tourism and digital infrastructure in 2026. “These are the sectors that will drive jobs,” Mulamula said. “That is our core objective.”

Wasiu Alli is a business and economics journalist with more than two years experience covering macro trends, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. An alumnus of Lagos State University and trained at Lagos Business School, he heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.

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