AfDB Launches $650 Million Annual Economic Support For Nigeria

The African Development Bank (AfDB) Group has approved a new five-year Country Strategy Paper (CSP) for Nigeria, committing approximately $650 million annually from 2025 to 2030 to drive economic transformation, resilience, and inclusive growth.

In a statement released on Thursday via its website, the AfDB said the strategy aims to mobilise $2.95 billion over the first four years, with an additional $3.21 billion in expected co-financing from development partners.

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

“Under the new strategy, the bank will provide $2.95bn over the first four years, complemented by an estimated $3.21bn in co-financing from development partners. The strategy focuses on two key priority areas: promoting sustainable, climate-smart infrastructure to enhance competitiveness and industrial development; and advancing gender and youth-inclusive green growth through industrialization.”

The new CSP focuses on two strategic priorities:

1. Promoting sustainable, climate-smart infrastructure to enhance competitiveness and industrial development.
2. Advancing gender- and youth-inclusive green growth through targeted industrialisation efforts.

According to the Bank, these priorities are designed to address Nigeria’s vast infrastructure deficit, estimated at $2.3 trillion between 2020 and 2043.

The strategy will support investments in:

• Climate-resilient roads
• Electricity grid expansion
• Clean water systems
• Agribusiness development

These initiatives are expected to create over 1.56 million jobs, particularly for women and youth, and contribute to doubling Nigeria’s economy to $1 trillion.

Millions of Nigerians—including women, youth, MSMEs, state governments, and rural communities—are expected to benefit from improved access to finance, stronger supply chains, and expanded training and business opportunities.

The AfDB also plans to deliver targeted support to women entrepreneurs under initiatives like the Affirmative Finance Action for Women in Africa (AFAWA), while youths will gain critical skills to help reduce unemployment.

Supporting National and Continental Goals

The CSP aligns with:

• Nigeria Agenda 2050
• National Development Plan (2021–2025)
• 2023 Renewed Hope Agenda

It also supports Nigeria’s integration into the African Continental Free Trade Area (AfCFTA) by enhancing energy access, upgrading transport infrastructure, and expanding market access for farmers, agro-entrepreneurs, and businesses.

Climate Resilience and Unity

By investing in greener and more resilient infrastructure and agricultural systems, the strategy aims to:

• Strengthen Nigeria’s climate adaptation capacity
• Reduce the impacts of floods and droughts
• Help mitigate farmer-herder conflicts
• Promote a more cohesive and resilient national economy

With a strong focus on inclusive growth, climate resilience, and industrial development, the AfDB’s new CSP is expected to play a critical role in Nigeria’s ongoing transformation, strengthening the country’s foundation for sustained prosperity.