Nigeria, AfDB to review $6.2 billion project portfolio

Nigeria and the African Development Bank (AfDB) have reached an agreement to assess the country’s $6.2 billion project portfolio. The review aims to identify challenges, speed up delivery, and align operations with Nigeria’s government priorities. This partnership marks the largest shareholder relationship between Nigeria and the AfDB.

The portfolio consists of 55 public and private sector operations, representing the bank’s biggest project portfolio in Africa. Nigerian Finance Minister Taiwo Oyedele and AfDB President Sidi Ould Tah discussed the agreement in Bangkok, reaffirming Nigeria’s commitment to the bank and its capital subscription obligations. Ould Tah, known for his Four Cardinal Points agenda, emphasized the bank’s focus on financing gaps, financial sovereignty, demographic dividends, and resilient infrastructure.

The two officials also addressed the high borrowing costs faced by African nations, particularly the issue of credit ratings not always reflecting economic improvements. In response, AfDB is developing a facility to provide technical and analytical support to African governments in their dealings with credit rating agencies. The review will build on AfDB’s existing financing commitments to Nigeria and follows broader efforts to reduce borrowing costs across the continent.