Nigeria requires an estimated $3 trillion by 2044 to finance critical infrastructure projects, which amounts to $100 billion annually. However, current levels of financing are insufficient to meet these needs. This document outlines Nigeria's national financing strategy to close this gap by leveraging multiple sources of domestic and international financing. It identifies taxation, capital markets, exports, foreign direct investment, remittances, and official development assistance as potential sustainable sources of capital. The strategy also explores ways to access financing from multilateral development institutions and private investors through instruments like development policy loans, risk mitigation facilities, and blended concessional finance. Reforms are needed to address barriers inhibiting access to financing, including inconsistencies in tax law, illicit

1. NATIONAL FINANCING STRATEGY FOR NIGERIA
Estimated Financing Needs
As EMDEs move up the ladder to achieving the global goals, finance become one major
factor that tends to stop the various development plans/projects. As such, there is need to
explore alternative investment or finance options locally and internationally available to drive key
development initiatives.
According to the OECD (2019), Nigeria ranks 2 of 10 top Official Development Assistance
(ODA) recipients in Africa with 6% net for 2017. Despite the huge capital inflow, critical
sectors/investments still remain underfunded.
Similarly, the IMF (2018) estimates about $500 billion yearly for developing countries. The
African Development Bank (AfDB) (2019), estimates that Nigeria will needs $3 trillion by 2044
signifying $100 billion annually to finance critical infrastructures e.g. Water and Sanitation,
Transport, Power and Information and Communication. Consequently, raising the finance and
achieving the development of critical infrastructures requires a rethink of existing policies and
national development frameworks on a long-term bases.
Sources of Finance Available to Nigeria
To achieve the global goals – SDGs, the IMF posits that developing countries can raise the half
a trillion dollars needed given the right conditions. Following the Addis Ababa Agenda for Action,
it now a matter of urgency that government embark on efforts to provide critical infrastructures
that would catalyse economic growth responsibly without increasing public debt and contingent
liabilities to unsustainable levels.
After critically studying the economic landscape, we have identified sustainable sources of
finance for development for example Taxation, Capital Market, Exports, International Private
Finance (FDIs, Portfolio Equity and personal remittance), and ODA. The following data from
OECD indicates how capable these sources can be in raising the needed capital - International
Private Finance maintained steady growth to attain 65%, FDI 21%, ODA 11%. Even though
Portfolio Investment has steadily low over 9 years, it presents an opportunity for exploit given
proper regulation of the capital market. By applying the Integrated National Financial
Frameworks (INFFs), a mix of sources finance would stimulate internal revenue generation.
Also, Multilateral Development Institutions (MDIs) provides finance for development in the form
of Concessional Financing, Vertical financing for specific causes like malaria, education, Gavi
fund, Tuberculosis and the Bill and Melinda Gate fund
The World Bank Groups – IDAs Public Sector Window (PSW), blended finance facility, local
currency facility, Risk mitigation facility etc. and IFCs Blended Concessional Finance (BCF).

2. Mode of Access
To access external funding for development finance, the government must develop new and
revise old policies in line with the INFFs. The INFFs must be structured in a way that it reduces
or eliminates complexities in relevant tax law, processes and improve ease of doing business.
In conjunction with the WB through its agencies – IDA and MIGA, Nigeria could leverage on the
PSWs-IDA18 $2.5 billion to catalyse private investment. IFCs Blended Concessional Finance
(BCF) can also pool finance from private sector to public sector to achieve the global goals. The
Managed Co-Lending Portfolio Program (MCPP) is another IFCs investment platform that
mobilizes private investors to create loan portfolios. This portfolio is designed to meet investor
needs, while addressing business and regulatory challenges.
In as much as we accept that banks balance sheet cannot do the financing alone, government
must expand grounds in the capital market for an inclusive participation. This way, investors
would be able to make investment decisions based on environment, social and governance
(ESG) criteria. These includes; Sustainable Development Bonds, IDA Bonds, Catastrophe
Bonds, Green and Social Bonds, and Crisis Financing to mention but a few.
Working with MDBs to address barriers to accessing finance for development
Drawing on the WBGs “Cascade Approach”, where countries are to leverage on WBGs
technical capabilities to mine private finance and sustainable private sector solutions to provide
value for money. There are identifiable barriers that hinder access to finance for development
and these include; absence of a sustainable private sector solution that limits public debt and
contingent liabilities, complex and inconsistent tax processes and laws, illicit financial flows,
financial and fiscal regimes reform, inadequate rule of law and independence of the judiciary
among many others.
In the light of the above, government must take urgent steps to readdressing its reform
strategies, building strong institutions, and request WBG assistance and instruments for policy
and regulatory reforms.