The International Finance Corporation (IFC) is betting big on Nigeria’s real-sector revival, prioritising manufacturing, clean energy, agriculture, tourism and other job-intensive industries as part of its $2.1 billion investment pipeline for 2026.
The push aims to accelerate private-sector growth and help Africa’s largest crude producer convert ongoing economic reforms into broad-based prosperity.
Christian Mulamula, IFC Country Head for Nigeria, said the institution’s strategy for 2026 will focus on sectors with the highest potential to create sustainable employment and support Nigeria’s economic diversification agenda.
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“Clean energy will continue to grow, especially under DARES with more mini-grid investments,” Mulamula said in an exclusive interview with BusinessDay. “Manufacturing will also expand because manufacturing equals jobs. Tourism presents strong opportunities that Nigeria has not fully explored.”
He added that agriculture remains central to IFC’s strategy because it is the “backbone of African economies” and essential for reducing Nigeria’s dependence on crude oil. “We invested in Johnvents, a cocoa processor, and we want to expand such opportunities,” he noted.
Jobs Crisis at the Centre of IFC’s Push
Nigeria’s urgent need for job creation underpins the IFC’s investment direction. After multiple reforms since 2023, including subsidy removals and foreign-exchange liberalisation income levels have sharply declined, pushing at least 129 million Nigerians into poverty.
Mulamula highlighted a troubling demographic trend: Africa’s youth population is expanding faster than its job-creation capacity. Nigeria alone is projected to add 130 million people by 2050, reaching an estimated population of 360 million.
“We see 12 million youths entering the labour market every year, but we are creating only about three million jobs annually,” he said. “That leaves a deficit of roughly nine million jobs each year. This is why jobs sit at the heart of our development strategy. Jobs give dignity, generate income, and move people out of poverty.”
To address this, the IFC’s Nigeria programme is anchored on three pillars:
Building foundational infrastructure such as power supply, ports, logistics and workforce skills
Supporting regulatory reforms that unlock private investment
Mobilising capital from private investors, including blended-finance structures
“The World Bank Group cannot solve these challenges alone,” he added.
Key Investments Already Underway
Several investments in 2025 illustrate the IFC’s job-creation strategy:
$5 million revolving facility to Husk Power Systems to scale mini-grid electrification for rural SMEs and women-owned businesses.
“Electricity is the number one complaint of Nigerians,” Mulamula said. “Husk goes directly to that challenge.”
$50 million investment in the Lagos Free Zone, expected to help catalyse industrial production with port infrastructure that improves the movement of goods. IFC projects the zone could generate around 30,000 direct and indirect jobs.
$50 million financing for Mohinani Plastics, supporting recycling, climate-aligned manufacturing, and circular-economy initiatives.
Despite recurring investor concerns around FX instability, Mulamula said sentiment is improving following reforms such as subsidy removal and the floating of the naira.
“The currency has moved from around N1700/$ to the mid-N1400s/$, and we see increasing investor interest,” he said. IFC also uses local-currency financing in volatile sectors to reduce foreign-exchange risk.
2026 Outlook: Mini-Grids, Manufacturing and Digital Infrastructure
As Nigeria continues navigating its reform cycle, the IFC plans to scale investments in mini-grids, industrial production, agriculture value chains, tourism, and digital infrastructure in the coming year.
“These are the sectors that will drive jobs,” Mulamula said. “That is our core objective.”
