Nigeria commits $500m to Africa Development Fund in strategic push for regional growth

Nigeria has taken a bold step to reassert its leadership in Africa’s development landscape, committing $500 million to replenish the Nigeria Trust Fund (NTF), a concessional financing facility managed by the African Development Bank (AfDB).

The agreement, which extends the fund’s operations through 2040, was inked by Wale Edun, minister of finance and coordinating minister of the economy, and Akinwumi Adesina, outgoing AfDB President on the sidelines of the Bank’s Annual Meetings in Abidjan.

The $500 million contribution marks the largest single replenishment of the NTF in over a decade, reaffirming Nigeria’s pledge to pan-African development cooperation and regional economic transformation.

The Trust Fund, first established in 1976, provides low-interest loans and concessional finance to support development initiatives in low-income African countries.

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“This is not just an act of generosity—it is a strategic investment in Nigeria’s future and the prosperity of our neighbors,” Edun said in a statement released by the finance ministry. “A stronger continent means greater opportunity for our people and our businesses.”

The funding will be channeled toward high-impact investments in infrastructure, agriculture, education, and healthcare — sectors that are critical for sustainable development and economic resilience.

According to the ministry, one of the key objectives is to expand the participation of Nigeria’s private sector in cross-border development, positioning Nigerian firms to contribute to and benefit from continental growth.

The initiative aligns with President Bola Ahmed Tinubu’s “Renewed Hope Agenda,” which prioritises regional economic integration, private sector development, and inclusive growth.

For Nigeria, it represents not only a diplomatic gesture of solidarity but also a pragmatic effort to build trade and investment links across Africa, a continent with rising consumer demand and substantial infrastructure gaps.

The move also coincides with a symbolic moment for the African Development Bank, as President Adesina, a Nigerian national and former agriculture minister, prepares to conclude his term at the helm. Under Adesina’s leadership, the AfDB has expanded its focus on industrialisation, energy access, and food security — all areas closely aligned with the objectives of the revamped Trust Fund.