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The African Development Bank Group and the Federal Government of Nigeria have signed a protocol agreement committing $500 million over 15 years to extend the Nigeria Trust Fund (NTF), reinforcing Nigerias leadership role in continental development financing and expanding support for Africas most vulnerable countries. The ceremony, held on Thursday 29 May during the Banks 2025 Annual Meetings in Abidjan, marks an important moment in the Funds nearly five-decade history. Established in 1976 as a dedicated financing mechanism to contribute to Africas economic development and social progress, the fund has been a key player in this process. The Nigeria Trust Fund is a powerful symbol of Nigerias leadership, solidarity, and vision for Africas development. As the largest single donor trust fund of the Bank, it stands as a testament to Nigerias role as both a founding member of the African Development Bank and a driving force behind our continents development agenda, said Dr Akinwunmi Adesina, President of the African Development Bank Group. Since its establishment, the NTF has supported 92 operations across 33 countries, delivering impact in critical sectors including agriculture, energy, water and sanitation, education, and transport. The Fund has played a particularly catalytic role in least developed and most vulnerable countries, serving as a formidable source of last-mile funding to close financing gaps and respond to urgent development needs. Wale Edun, Minister of Finance of the Federal Republic of Nigeria and African Development Bank Governor, emphasized Nigerias commitment to continental solidarity: The fund was first established in 1976, and Nigeria is proud to be replenishing it. We are happy to be able to support the least stable among us. That though we are all developing countries, we can all be able to support each other. The $500 million commitment over the next 15 years demonstrates Nigerias sustained dedication to continental development. This extension comes after multiple previous renewals, reflecting the enduring value and relevance of Nigerias partnership with the African Development Bank. The $500 million dollars that you have committed will allow us to do more hybrid capital, more securitization, will allow us to do more private sector work, and mobilize more private capital for many of the low-income countries. Nigerias decision today proves that Nigeria is always on the right side. The NTF is the largest we have at the African Development Bank, which is part of the Bank. It helps to co-finance operations in many countries, as well as feasibility studies for some other countries, Adesina noted. The amended protocol agreement introduces updates based on recommendations from a comprehensive evaluation by the Banks Independent Development Evaluation Department. The Fund is extended for fifteen years, providing long-term business continuity and planning certainty through 2040. The agreement also enables deployment of resources from the fund in innovative treasury, structuring, and other transactions, including balance sheet optimization, structured finance, and catalytic risk-sharing solutions. The Bank and Nigerian authorities are designing new innovative financial products, revising approval processes to improve efficiency and alignment with the Banks operational cycle. They are also developing a targeted communications strategy to enhance visibility of Nigerias contributions across Africa. The Nigeria Trust Fund serves as a fully-fledged financial window of the African Development Bank. |
