Nigeria Extends $500M to African Development Bank’s Trust Fund Through 2040

In a bold and visionary move to strengthen African solidarity and development financing, the Federal Government of Nigeria and the African Development Bank Group (AfDB) have signed a new protocol agreement that extends the Nigeria Trust Fund (NTF) through 2040. The agreement commits $500 million over the next 15 years, reaffirming Nigeria’s long-standing role as a leader in advancing inclusive and sustainable development across the continent.

The signing ceremony took place on Thursday, 29 May 2025, during the Bank’s Annual Meetings in Abidjan, Côte d’Ivoire, and marks a pivotal moment in the nearly 50-year history of the NTF.

“The Nigeria Trust Fund is a powerful symbol of Nigeria’s leadership, solidarity, and vision for Africa’s development,” said Dr. Akinwumi Adesina, President of the African Development Bank Group. “It stands as a testament to Nigeria’s role as both a founding member of the African Development Bank and a driving force behind our continent’s development agenda.”

A Legacy of Impact Since 1976

Established in 1976, the Nigeria Trust Fund has served as a dedicated and catalytic financing instrument designed to support Africa’s economic advancement and social transformation. Over the decades, the Fund has financed 92 operations across 33 African countries, with a strong emphasis on serving least developed countries (LDCs) and those facing acute vulnerability.

The NTF has funded critical interventions in agriculture, energy, water and sanitation, education, transportation, and other priority sectors. Its role has been especially critical in last-mile development, providing essential funding where conventional financing mechanisms fall short.

“Nigeria is proud to be replenishing this important Fund,” said Wale Edun, Nigeria’s Minister of Finance and AfDB Governor. “That though we are all developing countries, we can all support each other.”

A Vision for Financial Innovation and Expansion

The newly signed protocol introduces several forward-looking provisions, integrating lessons learned from a comprehensive evaluation led by the Bank’s Independent Development Evaluation Department. The updated framework will enable the NTF to engage in more innovative financial transactions, including:

• Hybrid capital and securitization

• Structured finance and catalytic risk-sharing

• Balance sheet optimization

• Private sector development initiatives

These mechanisms aim to unlock greater development capital and strengthen financial resilience for low-income countries.

“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,” noted Adesina.

Governance and Operational Efficiency Enhancements

In addition to the funding increase, the protocol lays out a revised governance framework that enhances decision-making efficiency and ensures better alignment with the Bank’s operational calendar. Improvements include:

• Streamlined approval processes

• Better integration with AfDB’s core operations

• Enhanced transparency and reporting frameworks

To further boost the Fund’s visibility, the AfDB and Nigeria are jointly developing a targeted communications strategy to highlight the NTF’s achievements and Nigeria’s continental leadership in development finance.

NTF: A Flagship Model for South-South Cooperation

The Nigeria Trust Fund serves as a fully integrated financial window within the African Development Bank, exemplifying South-South cooperation in action. It complements the Bank’s other financing windows and enables broader participation in blended finance structures, particularly in projects with high development impact but lower commercial appeal.

The renewed NTF protocol ensures that Nigeria’s contribution continues to drive inclusive growth, stability, and economic resilience in Africa through 2040 and beyond. It also reflects a maturing partnership between Nigeria and AfDB, aimed at delivering bold solutions to shared continental challenges such as climate vulnerability, infrastructure gaps, and youth unemployment.

A Call for Continental Collaboration

As Africa faces mounting development needs, the NTF stands as a model of how intra-African solidarity and leadership can create lasting change. With this extension, Nigeria not only reaffirms its commitment to pan-African progress but also invites other African nations and partners to consider similar mechanisms for mutual support and empowerment.

“Nigeria’s decision today proves that Nigeria is always on the right side,” said Adesina. “The NTF is the largest trust fund we have at the African Development Bank and continues to play a vital role in co-financing and capacity-building across Africa.”