Nigeria has witnessed a remarkable increase in private capital inflows, reaching nearly $6 billion in 2026, a significant rise from approximately $300 million in 2023. This surge was highlighted by the President of the World Bank Group, Ajay Banga, during a recent meeting with key Nigerian economic leaders in Bangkok, Thailand, on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank Group Annual Meetings.

In his remarks, Banga emphasized that the substantial inflow of private capital is indicative of a growing interest among investors in the Nigerian economy. The meeting included discussions with Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the Governor of the Central Bank of Nigeria, Olayemi Cardoso, focusing on the country's economic reform progress and strategies for sustainable growth.

Oyedele reported that Nigeria's tax-to-GDP ratio has also improved, climbing from 7% to 12.5% over the same period. This increase is expected to enhance the government's ability to finance public investments without resorting to deficit monetization, thereby strengthening fiscal stability.

The Nigerian government is actively working to consolidate the achievements of its economic reforms, aiming to create an environment conducive to increased investments in productive sectors. Oyedele noted that enhanced domestic revenue mobilization would provide the government with greater fiscal space to fund essential infrastructure and development projects.

During the discussions, the leaders explored how Nigeria could leverage World Bank guarantee instruments to unlock financing for infrastructure projects. Such instruments are crucial for attracting additional private capital and mitigating risks associated with long-term investments in infrastructure. The focus was particularly on power infrastructure and human capital development, which are vital for improving business competitiveness, productivity, and job creation in the country.

As Nigeria continues to implement its economic reforms, the government remains committed to fostering an investment-friendly climate that can sustain this upward trajectory in private capital inflows, ultimately contributing to enhanced living standards for its citizens.