The World Bank Group says Nigeria stands to tap billions of dollars in business opportunities as its Africa West portfolio expands, with most contracts already being acquired by local companies.
Nazaneen Ismali Ali, the bank’s regional procurement manager for Africa West and Central, said the region currently holds $63.5 billion in active commitments across 315 projects in 22 countries, with a near-term pipeline of $10.6 billion spanning 72 new projects.
“Nigeria prominently features in cumulative contracts, reflecting both the size of the programme and the pace of procurement in the country,” Ali said at the World Bank Group Business Opportunities seminar in Lagos on Tuesday.
She added that for suppliers here, this confirms that Lagos is an excellent place to compete, not only locally but also regionally.
Procurement under the Africa West portfolio has reached $43.6 billion across about 86,000 contracts, covering construction works, goods, consulting, and non-consulting services.
More than half of the contracts by volume are infrastructure works, with energy leading demand, followed by transport, education, and agriculture.
“Whether you are a construction firm, an IT systems developer, or a consulting or engineering company, there is a relevant entry point for you,” Ali said.
The World Bank official said local companies now dominate the majority of contracts across Africa, while values are broadly split between domestic and foreign firms.
“By numbers, local suppliers dominate every year with thousands of contracts,” Ali said. “By value, it is balanced; about an equal share goes to local and international companies. This is healthy because it encourages partnerships, technology transfer, and capacity growth.”
She urged international firms to consider joint ventures with Nigerian partners to remain competitive, while encouraging local companies to expand beyond single-country bids into regional integration projects spanning energy pools, transport corridors, and digital infrastructure.
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During the panel session, Galina Andronova Vincelette, World Bank vice president for operations policy and capital services, said small and medium-sized enterprises (SMEs) already form the bulk of contractors on World Bank-funded projects.
“Most of the contractors delivering procurement opportunities in our projects are actually small and medium-sized companies,” she said. “They participate across the full spectrum from small consulting services to goods supply and even civil works.”
She added that working on Bank-funded projects helps firms gain expertise, enter new markets and build resilience.
“Each project has a development objective. Having homegrown companies deliver on these goals is crucial for impact, for jobs, growth, and prosperity,” Menchelet said.
Bottlenecks remain
Nigeria’s private-sector leaders said access to finance and limited awareness still constrain broader participation.
Chinyere Almona, director-general of the Lagos Chamber of Commerce and Industry, said high borrowing costs make it difficult for SMEs to secure bid securities, performance guarantees and insurance.
“One of the biggest bottlenecks is the cost of finance,” Almona said. “If banks are unwilling to support businesses with guarantees, many simply cannot bid.”
She also pointed to fragmented approval processes across government agencies and limited visibility of procurement opportunities outside major cities.
“Businesses must also become more professional in how they prepare bids — bringing together finance, technical expertise, and compliance in one strong team,” she added.
However, Nigeria’s Bureau of Public Procurement (BPP) said reforms are underway to improve transparency and ease of access to contracts.
Adebowale Adedokun, director-general of the BPP, said procurement is being repositioned as a strategic tool for development, backed by digital platforms and capacity building.
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“We are going digital to reduce human interference and make opportunities accessible anywhere in the country and even globally,” Adedokun said. “All government agencies will be required to publish procurement opportunities online.”
He added that SMEs are being prioritised through training programmes aligned with both Nigerian and World Bank procurement standards.
World Bank officials stated that Nigeria currently holds approximately $17 billion in active World Bank-financed projects, making it one of the largest recipients globally.
Hiba Tahboub, the Bank’s chief procurement officer, stated that the institution awards approximately $20 billion in contracts annually worldwide, with Nigeria already emerging as the top supplier country in Africa.
“We want to see even more Nigerian companies not just winning at home but across Africa and globally,” she said.