The African Development Bank (AfDB) has revealed that its commitment to funding development projects in Nigeria stands at a substantial $4.4 billion, making it the largest funding allocation in the African region.
This announcement was made by Mr. Lamin Barrow, the Country Director of AfDB, during a recent Joint Country Portfolio Performance Review meeting held in Abuja. The meeting brought together representatives from the AfDB and the Ministry of Finance, International Economic Relations department, to assess and discuss the progress and performance of ongoing projects.
Mr. Barrow also commended the Nigerian federal government for its recent series of policy reforms, such as the removal of fuel subsidies and the unification of foreign exchange rates. These reforms have demonstrated the government’s commitment to economic stability and growth.

In Mr. Barrow’s own words, “Currently, the Bank’s portfolio in Nigeria is one of the largest among the Regional Member Countries (RMCs), with a total commitment value of US$ 4.4 billion. These are comprised of 48 operations fairly evenly distributed between public and private sector operations. The presentations will provide more information on the profile and quality of the portfolio.”
Furthermore, Mr. Barrow highlighted the progress achieved in Nigeria’s procurement process, noting an increase in the submission rate of procurement plans from 72% to 82%. He also acknowledged the Federal Executive Council’s (FEC) approval of the Ekiti Knowledge Zone project, a significant development that will contribute to Nigeria’s knowledge economy.
He stated, “Since the 2022 CPPR Workshop, some of the portfolio performance metrics have improved. In particular, operations flagged for implementation challenges decreased from 36% in January 2023 to 32% in September 2023. This is a result of collective efforts from the Federal Ministry of Finance, the Executing Agencies, and the Bank to reduce start-up and implementation delays. Indeed, the time taken to meet loan effectiveness and first disbursement conditions tend to be excessive.”
Mr. Barrow also highlighted the reduced share of start-up delays, which has declined from 32% of flagged operations in June 2023 to 28% in October 2023. He anticipates that with timely and targeted actions for certain projects, this share is expected to decrease further to 8% by the end of 2023.
While discussing the challenges faced in ensuring the smooth performance of the AfDB portfolio in Nigeria, Mr. Stanley George, the Director of the International Economic Relations Department at the Federal Ministry of Finance, pointed out some key obstacles. These include extended implementation timelines, low disbursement rates, and inadequate communication with various Ministries, Departments, and Agencies (MDAs).
In summary, the AfDB’s substantial commitment of $4.4 billion to development projects in Nigeria is a testament to its confidence in the country’s economic potential. The Nigerian government’s recent reforms and commitment to addressing implementation challenges are seen as positive steps toward ensuring that these projects contribute to the nation’s development and growth. Despite the obstacles, the collaboration between the AfDB and the Nigerian government remains critical in achieving the intended objectives of these projects.
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