Unlocking Nigeria’s Growth: New World Bank Group Report Maps Pathways to a Stronger Private Sector

Lagos, Nigeria, June 10, 2025— With the right reforms, Nigeria has the potential to become a leading engine of private sector–led growth and job creation in Africa, according to a new Country Private Sector Diagnostic (CPSD) released last week by the World Bank Group.

Developed jointly by IFC and the World Bank, the Nigeria CPSD is a research-based diagnostic tool that offers practical guidance to advance national efforts and create stronger conditions for private sector-led growth. The report identifies sectors where targeted policy actions can create an environment conducive to up to $20 billion in private investment and create nearly one million new jobs, supporting the government of Nigeria’s ambition for sustainable and inclusive growth.

Nigeria’s private sector has already demonstrated strong entrepreneurial drive, particularly in fast-growing industries such as technology, renewable energy, and manufacturing.

“We see growing investor interest across several sectors in Nigeria, driven by its entrepreneurial energy and market potential,” said Dahlia Khalifa, IFC Regional Director for Central Africa and Anglophone West Africa. “In 2023 alone, Nigeria attracted over $1 billion in venture capital funding, reflecting both local dynamism and global confidence. By implementing concrete policy action to simplify market entry, Nigeria can unlock new private investment to fuel jobs, innovation, and global competitiveness.”

Nigeria has made important strides in advancing legislative, regulatory, and institutional reforms to improve the business environment and promote market transparency. The CPSD emphasizes that building on this progress through targeted policy measures can strengthen investor confidence and address remaining market gaps.

“Nigeria’s development strategy recognizes that private sector growth and sound public policy must go hand in hand,” said Taimur Samad, Acting Country Director for Nigeria at the World Bank. “The CPSD offers actionable advice to help deepen reforms, expand opportunity, and foster shared prosperity.”

The CPSD highlights four sectors where targeted regulatory and institutional reforms   can translate into tangible economic outcomes:

• Information and Communications Technology (ICT): Streamlining right-of-way regulations, expanding fiber networks, and revising infrastructure sharing rules to ensure fair access and prevent anti-competitive practices could catalyze $900 million to $4 billion in investment and generate up to 229,000 jobs.
• Pharmaceutical Manufacturing: Accelerating regulatory processes and digitizing customs procedures and drug approval systems could attract up to $1.6 billion in investment and create 44,000 jobs, while enhancing health security.
• Renewable Energy (Solar): Raising mini-grid capacity limits and streamlining licensing to expand private participation in the renewable energy sector and mobilizing blended finance could unlock $8.5 billion in investment and deliver 365,000 jobs by 2030.
• Agriculture (Cassava and Soybeans): Strengthening value chains, enhancing seed quality and certification systems, providing better digital tools for farmers and fostering coordination between farmer organizations could drive up to $6 billion in private investment and create 344,000 jobs.

The Nigeria CPSD is part of the World Bank Group’s core country diagnostics tools that help identify practical policy priorities to expand private sector participation, foster inclusive growth, and support long-term resilience.

The full Nigeria Country Private Sector Diagnostic is available here.