Nigeria seeks adviser for $2bn fibre SPV, retains 49% stake

Nigeria has begun the process of appointing a financial advisory firm to structure its planned 90,000-kilometre fibre-optic network under the $2 billion Building Resilient Digital Infrastructure for Growth (BRIDGE) Project, marking a key step toward setting up a privately managed project company to deliver the nationwide rollout.

An official familiar with the project told BusinessDay that the initial selection process for a financial and transaction advisory firm was nearing completion, adding that the adviser would help structure funding and support the establishment of a special purpose vehicle (SPV) that will oversee the fibre deployment across Nigeria’s 774 local government areas.

Under a financing agreement with the World Bank’s International Development Association (IDA) dated January 20, 2026, the Nigerian government will retain a minority 49 percent stake in the project company, while private investors will hold operational control. The SPV has not yet been formed, the official said, but will be set up once the transaction advisory process is concluded.

“The government’s role is as a minority shareholder. Deployment is the responsibility of the SPV’s management team and will commence after it’s been established. We are working towards breaking ground this year,” the official explained.

The financing agreement formally secures $500 million in concessional credit already approved by the World Bank, setting out the ownership structure, governance framework, and milestone-based disbursement rules for the project. It caps government ownership at 49 percent to ensure private-sector control while tying funding releases to network deployment targets.

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The BRIDGE Project, approved by the World Bank Group’s board in October 2025, aims to expand wholesale, open-access broadband infrastructure to underserved and unserved regions, targeting about 33 million Nigerians currently offline. Licensed telecommunications operators will be able to access the network on a non-discriminatory basis.

The rollout will be executed in phases. The first phase, covering 30,000 kilometres of fibre, is expected to begin in early 2026 following preparatory work and the completion of key procurements, including the appointment of the transaction adviser. Subsequent phases will extend coverage nationwide, subject to performance milestones.

Funding from the IDA will be released in five tranches, with an initial $150 million allocated to the project company’s equity capitalisation. Further disbursements will depend on the SPV achieving deployment benchmarks of 5,000 km, 20,000 km and 40,000 km, culminating in the launch of wholesale open-access services.

The federal government will channel its participation through the Ministry of Finance Incorporated (MOFI), which will represent government interests, exercise voting rights, and ensure compliance with national priorities and World Bank requirements. The financing agreement was signed on December 30, 2025.

The $500 million IDA credit carries a maximum commitment charge of 0.5 percent per annum on undrawn funds, with repayment scheduled to begin in October 2030 and continue over 20 years in semi-annual instalments.

Oversight of the project will be led by the Ministry of Communications, Innovation, and Digital Economy, with financial management handled by the Federal Project Financial Management Department. A dedicated Project Implementation Unit will coordinate day-to-day activities, supported by a project management company responsible for procurement, monitoring, and compliance with environmental and social safeguards.

The agreement also mandates the implementation of an Environmental and Social Commitment Plan, covering community engagement, grievance redress, and gender-based violence prevention, alongside regular reporting to the World Bank.

Beyond infrastructure deployment, the BRIDGE Project includes technical assistance to strengthen government capacity for delivering climate-resilient, high-quality broadband, with the goal of improving digital access for public services, education, healthcare and economic activity nationwide.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.

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