The World Bank has mandated that companies bidding for international civil works must commit at least 30% of labour costs to hiring local workers.
This aims to boost job creation and skills development in developing countries.
In a recent statement, the bank said it is strengthening its procurement requirements to help tackle job shortages in developing countries.
Companies working on World Bank-funded projects must now prioritise local labour in civil works contracts, such as the construction and maintenance of transport and energy infrastructure.
Gallina A. Vincelette, vice president for Operations Policy and Country Services at the World Bank, said:
“By prioritising the use of local labour in World Bank-funded projects, we not only create immediate employment opportunities for people in our client countries but also invest in the long-term potential of local communities. This approach helps build a skilled and better-equipped workforce and strengthens local economies.”
The changes, which take effect from September 1, 2025, are expected to support job creation for 1.2 billion young people projected to enter the workforce within the next decade.
They also aim to boost income generation in communities, improve standard of living, and build local knowledge and skills.
This directive builds on the World Bank’s procurement framework introduced in March 2025, aimed at local job creation, ensuring quality in bid evaluation, and innovation.
By prioritising local labour in procurement, developing nations like Nigeria will be able to ensure that a growing workforce finds meaningful employment and will aid widespread creation of employment opportunities for construction workers, engineers, to support staff.
