AfDB approves $650m yearly funding for Nigeria’s economy

The African Development Bank Group has approved a new five-year strategy for Nigeria that will provide about $650 million annually between 2025 and 2030.

The funding aims to drive economic transformation, build resilience, and create widespread prosperity across Nigeria, according to a statement released Thursday on the Bank’s website.

The plan will deliver $2.95 billion during its first four years, with an additional $3.21 billion expected from development partners.

“This strategy takes a transformative partnership between the Bank and Nigeria to a new level,” said Abdul Kamara, Director General of the African Development Bank’s Nigeria Office. “By investing in sustainable infrastructure and inclusive agricultural growth, we are not only building roads, power systems, and transforming agriculture – we are building pathways to prosperity for millions of Nigerians.”

The strategy focuses on two main priorities: developing climate-friendly infrastructure to boost competitiveness and industrial growth, and promoting green economic growth that includes women and youth.

A key goal is addressing Nigeria’s infrastructure gap, estimated at $2.3 trillion between 2020 and 2043. The Bank will invest in environmentally friendly roads, electricity expansion, clean water systems, and agribusinesses that create jobs, particularly for women and youth.

These investments are expected to help Nigeria double its economy to $1 trillion and create approximately 1,561,000 jobs.

The strategy aligns with Nigeria’s own development plans, including Agenda 2050, the National Development Plan 2021-2025, and the 2023 Renewed Hope Agenda. It also aims to help Nigeria benefit from the African Continental Free Trade Area by improving energy access, transportation networks, and market access.

Women entrepreneurs will receive special support through programs like the Affirmative Finance Action for Women in Africa initiative, while youth will gain skills to address unemployment challenges.

The Bank added that investing in greener, more resilient infrastructure and agricultural systems will strengthen Nigeria’s ability to handle climate challenges, reduce the impact of floods and droughts, ease farmer-herder conflicts, and build a more resilient economy.

By Oluwatoyin Ogunjuyigbe

https://businessday.ng/business-economy/article/afdb-approves-650m-yearly-funding-for-nigerias-economy/