Nigeria’s private capital inflows have climbed to nearly $6 billion in 2026, up from about $300 million in 2023, according to World Bank Group President Ajay Banga.
The reported increase comes as the Federal Government continues to implement economic reforms aimed at attracting investment, supporting job creation and improving living standards.
Banga made the disclosure during a meeting with Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele and Central Bank of Nigeria Governor Olayemi Cardoso. The meeting took place on the sidelines of the 2026 International Monetary Fund and World Bank Group Annual Meetings in Bangkok, Thailand.
According to a statement from the Federal Ministry of Finance, discussions focused on Nigeria’s reform progress and ways to turn improved macroeconomic stability into stronger economic growth.
World Bank Highlights Growth in Private Investment
Banga described the increase in private capital inflows as a sign of growing investor interest in Nigeria.
The reported figures suggest that private capital inflows have increased substantially since 2023. However, the impact on the wider economy will depend on how effectively investment translates into productive activity, employment and improved household incomes.
The discussions also examined ways to attract more private funding into key sectors and sustain investor confidence as economic reforms continue.
For Nigeria, expanding private investment could help businesses grow, support new projects and reduce some of the pressure on public finances.
Nigeria’s Tax-to-GDP Ratio Rises to 12.5%
During the meeting, Oyedele said Nigeria’s tax-to-Gross Domestic Product (GDP) ratio had increased from about 7 per cent to 12.5 per cent over the period under review.
The minister said stronger domestic revenue mobilisation could improve the government’s ability to finance public investment without relying on deficit monetisation.
A higher tax-to-GDP ratio means tax revenue represents a larger share of the economy. Nevertheless, the broader effect on public services and living standards will depend on revenue collection, government spending and the efficiency of public projects.
Oyedele said improved revenue generation would provide more fiscal room to fund infrastructure and other development priorities.
Government Explores World Bank Guarantees for Infrastructure
Another key issue discussed was the potential use of World Bank guarantee instruments to attract private financing for infrastructure projects.
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Such guarantees can help reduce certain investment risks and make projects more attractive to lenders and investors. They may therefore help mobilise funding for developments that would otherwise struggle to secure financing.
The discussions identified power infrastructure and human capital development as important priorities for sustained investment.
Reliable electricity can improve business productivity, while investment in education, skills and other areas of human development can support a more productive workforce.
The government’s challenge will be to convert financing opportunities and reform measures into projects that deliver measurable economic and social benefits.
FG Seeks to Turn Economic Reforms Into Better Living Standards
The meeting comes as the Federal Government seeks to move beyond macroeconomic stabilisation towards sustained growth and wider economic benefits.
Although increased capital inflows and improved tax collection may strengthen the economy’s financial position, their effects on ordinary Nigerians are not automatic.
Investment must support productive businesses, create jobs and expand economic opportunities. Likewise, higher public revenue needs to translate into effective infrastructure, public services and development programmes.
The discussions between Nigerian officials and the World Bank leadership therefore focused on attracting additional investment, strengthening domestic revenue and supporting priority sectors.
The reported rise in private capital inflows offers an indication of changing investor interest. However, the longer-term test will be whether the reforms produce durable growth, more employment and better living conditions for Nigerians.
