AfDB to Grant Nigeria $650m Annually to Drive Economic Transformation

According to a statement published on its website, the fund will not only drive economic transformation but also build resilience and foster broad-based prosperity across the country.

“The Board of Directors of the African Development Bank Group has a new five-year Country Strategy Paper (2025-2030) for Nigeria, committing about $650 million annually to drive economic transformation, build resilience, and foster broad-based prosperity across the country,” a part of the statement read.

Under the new strategy, the bank will provide $2.95 billion over the first four years, complemented by an estimated $3.21 billion in co-financing from development partners.

The Strategy Paper will focus on two key priority areas, which include: promoting sustainable, climate-smart infrastructure to enhance competitiveness and industrial development; and advancing gender and youth-inclusive green growth through industrialization.

According to the Abidjan based bank, the strategy aims to close Nigeria’s critical infrastructure gap – estimated at $2.3 trillion between 2020 and 2043 – by investing in climate-friendly roads, power, and water systems, and supporting agribusinesses that create jobs, especially for women and youth.

The investments are projected to support Nigeria’s ambition to double the size of its economy to $1 trillion and to create 1,561,000 jobs.

The strategy paper aligns with Nigeria’s long-term development plans, including the Agenda 2050, the National Development Plan 2021-2025, and the 2023 Renewed Hope Agenda.

The Country Strategy also supports Nigeria’s efforts to capitalize on opportunities offered by the African Continental Free Trade Area by boosting energy access, improving transportation networks, and enhancing market access for farmers, agro-entrepreneurs, and businesses.

Commenting on the strategy, Director General of the African Development Bank Nigeria Office, Mr Abdul Kamara, noted that the “strategy takes a transformative partnership between the bank and Nigeria to a new level

“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,” he said.

Millions of Nigerians, including women, youth, micro-, small- and medium-sized enterprises, State governments, and rural communities, are expected to benefit from improved access to finance, enhanced supply chains, training, and business opportunities.

By supporting greener, more resilient infrastructure and agricultural systems, the strategy also strengthens Nigeria’s adaptation efforts, mitigating the effects of floods and droughts, easing farmer-herder conflicts, and contributing to a stronger and united future.