Nigerian companies are increasingly breaking into the global development procurement market, securing contracts worth over $2.5 billion from World Bank–financed projects in the last five years, a development experts say reflects growing competitiveness and the impact of recent economic reforms.
The World Bank disclosed this on Tuesday at its Group Business Opportunities Seminar in Lagos, revealing that Nigeria now ranks fifth globally among countries whose local suppliers benefit the most from World Bank–funded contracts.
According to the multilateral lender, Nigerian firms have won more than 6,800 contracts across multiple sectors, positioning the country as one of the strongest performers among developing economies in accessing development finance–backed procurement opportunities.
Nigerian Firms Secure $2.5bn World Bank Deals, Rank Fifth Globally
Speaking at the event, the World Bank’s Vice President for Operations Policy and Country Services, Ms Gallina Vincelette, described Nigeria’s performance as a major milestone in the country’s engagement with global development financing.
“Over the past five years, Nigerian suppliers have been awarded more than 6,800 World Bank-financed contracts with a total value exceeding two and a half billion dollars,” Vincelette said.
She disclosed that over 60 per cent of the awarded contracts were tied to urban and social infrastructure projects, including roads, bridges, hospitals, and school construction.
“This places Nigeria fifth globally in terms of contracts awarded to locally based suppliers. It is a significant achievement and shows that Nigerian companies are increasingly competitive, not just domestically but across Africa and globally,” she added.
Vincelette noted that Nigerian firms are also well positioned to pursue World Bank–backed opportunities beyond the country, particularly across Africa, where demand for infrastructure development remains strong.
Reforms Driving Global Confidence in Nigerian Firms
In his opening remarks, the Minister of Budget and Economic Planning, Atiku Bagudu, attributed Nigeria’s improved access to global procurement opportunities to recent economic reforms and strong support from international partners, particularly the World Bank Group.
Bagudu said the past two and a half years had been marked by difficult but necessary policy decisions aimed at repositioning the economy.
“These years have been years of reform, and the World Bank stood by Nigeria,” the minister said.
“Our President took what may be one of the most courageous combinations of economic decisions taken by a political leader in recent history.”
He stressed that despite regional instability and democratic challenges across parts of West Africa, Nigeria stayed the course with reforms that restored confidence among development partners and investors.
According to Bagudu, the Federal Government believes Nigerian businesses—ranging from large construction firms to artisans and service providers—can compete more effectively on the global stage if they leverage the opportunities created by World Bank procurement frameworks.
“Our President believes in the capacity of Nigerians. This opportunity provided by the World Bank is one that our companies must take advantage of, not only at home but across the continent,” he said.
Massive Global Procurement Pipeline Opens New Doors
Vincelette further highlighted the scale of procurement opportunities available through World Bank–funded projects worldwide, urging Nigerian firms to look beyond local projects.
She disclosed that the World Bank currently has $250 billion in approved and committed financing available for projects across developing countries.
“That financing translates into nearly 40,000 active procurement opportunities globally,” she said. “These are opportunities for companies to deliver infrastructure, services, and technical expertise across different regions.”
Industry experts at the seminar noted that improved awareness and access to these procurement pipelines could significantly boost Nigerian firms’ international revenues and technical capacity.
Local Labour Rule to Drive Job Creation
In a move expected to strengthen job creation, the World Bank announced a mandatory 30 per cent local labour requirement in civil works contracts under its projects.
Vincelette explained that the rule aligns with the bank’s broader jobs agenda and ensures that host countries benefit directly from development investments.
“At least 30 per cent of total labour costs in civil works contracts must now be sourced locally,” she said. “When we invest in countries, we want to ensure that those investments translate into skills development, employment, and long-term human capital growth.”
Economists say the policy could significantly increase employment opportunities in Nigeria, especially in construction and infrastructure-related sectors.
The World Bank’s Director and Chief Procurement Officer, Ms Hiba Tahboub, said reforms introduced in recent years had transformed the procurement process, shifting emphasis from lowest cost bids to quality, sustainability, and safety standards.
“Since 1964, our procurement framework has evolved continuously to respond to global challenges and market dynamics,” Tahboub said.
She disclosed that in March 2025, the bank introduced weighted evaluation criteria, allowing procuring entities to reward contractors that demonstrate stronger safety plans, technical competence, and sustainability measures.
“This ensures that procurement delivers value for money, not just the cheapest option,” she explained.
Nigeria Central to World Bank’s Energy Agenda
On energy access, the International Finance Corporation (IFC) Director for Central Africa and Nigeria, Ms Dahlia Khalifa, said Nigeria plays a strategic role in the World Bank Group’s Mission 300 initiative.
The programme aims to reduce the number of Africans without electricity access by 300 million people by 2030, in partnership with the African Development Bank.
“Nigeria is a compact country under this initiative, meaning it is central to our strategy of combining policy reforms, infrastructure investment, and private sector participation,” Khalifa said.
She disclosed that IFC’s current investment portfolio in Nigeria stands at about $1.3 billion, while total financing mobilised for the country last year reached $5 billion, the highest in four years.
“Our ambition is higher. We want to do more in Nigeria, especially in energy, infrastructure, and private sector development,” she added.
Representing Lagos State Governor Babajide Sanwo-Olu, the Commissioner for Commerce, Cooperatives, Trade and Investment, Folasade Ambrose, said the state was positioning itself as a hub for World Bank–backed investments.
“As Africa’s largest sub-national economy, Lagos offers robust PPP opportunities across transportation, energy, healthcare, waste management, and the digital economy,” Ambrose said.
She added that Lagos State was actively promoting SME participation and women-led businesses in global trade, noting that 189 out of 253 businesses trained under the Lagos State Export Readiness Programme were women-owned.
SMEs Still Face Financing Challenges
During a panel discussion, the Director-General of the Lagos Chamber of Commerce and Industry, Dr Chinyere Almona, identified high financing costs and limited visibility of procurement opportunities as key barriers for SMEs.
However, she noted that recent procurement reforms and improved access to online bidding portals were gradually addressing these challenges.
Similarly, the Director-General of Nigeria’s Bureau of Public Procurement, Dr Adebowale Adedokun, said public procurement in Nigeria was evolving from a transactional process to a strategic economic tool.
“Procurement is now being positioned as an enabler of transparency, efficiency, and private sector growth,” Adedokun said.
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