Nigeria Commits $500 Million to Extend Africa Trust Fund for 15 Years

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). This agreement, signed during the Bank's 2025 Annual Meetings, marks a significant milestone in the Fund's nearly five-decade history. Established in 1976, the NTF has been instrumental in Africa's economic development and social progress, supporting 92 operations across 33 countries in critical sectors such as agriculture, energy, water and sanitation, education, and transport.

The NTF has been particularly crucial in least developed and most vulnerable countries, serving as a source of last-mile funding to close financing gaps and respond to urgent development needs. Nigeria's commitment to replenishing the fund underscores its dedication to continental solidarity and support for Africa's most vulnerable nations. The $500 million commitment over the next 15 years demonstrates Nigeria's sustained dedication to continental development, reflecting the enduring value and relevance of its partnership with the African Development Bank.

The amended protocol agreement introduces updates based on recommendations from a comprehensive evaluation by the Bank's 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 the 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 Bank's operational cycle. They are also developing a targeted communications strategy to enhance visibility of Nigeria's contributions across Africa. The Nigeria Trust Fund serves as a fully-fledged financial window of the African Development Bank, helping to co-finance operations in many countries, as well as feasibility studies for some other countries.

The extension of the NTF highlights Nigeria's leadership role in continental development financing and its commitment to supporting Africa's most vulnerable countries. The Fund's impact in critical sectors and its catalytic role in least developed countries underscore its importance in Africa's development agenda. The $500 million commitment over the next 15 years demonstrates Nigeria's sustained dedication to continental development, reflecting the enduring value and relevance of its partnership with the African Development Bank.