FG, And AfDB Ink $10bn Agreement To Improve Infrastructure.
In a renewed bid to close Nigeria’s infrastructure deficit and stimulate inclusive economic growth, the Federal Government has signed a landmark $10 billion financing agreement with the African Development Bank (AfDB).
The agreement, finalized at a multilateral summit held yesterday in Abuja, is designed to accelerate infrastructural development in key sectors, including energy, transportation, water resources, and agriculture, over the next five years.
AfDB President, Dr. Akinwumi Adesina, who led the Bank’s delegation to the meeting, described the funding as part of a broader development strategy that aims to uplift millions of Nigerians from poverty through sustainable investments in critical sectors.
He said: “This partnership is rooted in our commitment to unlock Nigeria’s potential. The $10 billion facility will be disbursed in phases and tied strictly to milestone-based projects with clearly defined outcomes in job creation, energy reliability, and food security.”
He noted that Nigeria, as Africa’s largest economy, requires “urgent, transformative infrastructure” that can support its vast population and spur private sector expansion.
The Federal Government, represented by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, welcomed the deal, describing it as a “bold step forward” in President Bola Tinubu’s Renewed Hope Agenda.
According to Edun, the $10 billion fund will be committed to projects including:
The Lagos-Kano Standard Gauge Railway expansion
Rural electrification and off-grid solar energy projects in northern and southern states
Construction of integrated agro-industrial parks in six geopolitical zones
Nationwide irrigation and water retention facilities for dry-season farming
Upgrade of federal highways and logistics corridors
He added that the projects will be jointly monitored by the Ministry of Finance, Ministry of Works, Ministry of Power, and the AfDB implementation team, ensuring transparency and accountability at every phase.
The financing agreement has, however, sparked criticism from certain opposition figures, who argue that Nigeria’s debt profile is becoming unsustainable. One such critic, Senator Ifeanyi Mba, questioned the necessity of another multibillion-dollar loan amidst ongoing economic challenges.
Also read: Pastor Josh Sullivan Rescued By Police In South Africa
But pushing back against what it described as “uninformed politicking”, a coalition of civil society organisations under the banner of Coalition for Responsible Governance (CRG), has defended the agreement, stating that the Afdb facility is one of the most concessional and structured credit instruments available to developing countries.
In a statement signed by its Director, Ms. Halima Dikko, the CRG stated:
“The AfDB loan facility has an interest rate of under 1.6 percent with a grace period of up to 10 years. These are long-term, development-focused loans that do not contribute to reckless borrowing but instead promote strategic, high-impact investments.”
Citing data from the Debt Management Office (DMO), CRG noted that as of Q1 2025, Nigeria’s total external debt stood at $45.2 billion, of which only 11.5 percent ($5.2 billion) is owed to AfDB, a marginal increase from $4.9 billion in 2023.
The CSO also debunked claims that the facility lacked legislative scrutiny, adding that all major AfDB projects undergo a three-layered review process involving the AfDB’s internal board, Nigeria’s Federal Executive Council (FEC), and the National Assembly.
“The 2025-2030 Infrastructure Acceleration Plan, of which this $10bn facility is a component, was tabled before the National Assembly last December and received bipartisan support in committee reviews,” CRG added.
Also Read: 51 Christians Killed by Suspected Jihadists In Plateau State
They emphasized that the Tinubu administration is not accumulating debt arbitrarily but is leveraging credible multilateral institutions to finance critical sectors without burdening future generations.
The Ministry of Finance has indicated that the first tranche of the AfDB loan — amounting to $2.5 billion will be released in July 2025 and will focus on energy and rail projects.
President Bola Tinubu is expected to make a formal address next week to outline the administration’s full roadmap for infrastructure delivery over the next four years.
Meanwhile, experts have advised stakeholders and citizens to hold the government accountable through active monitoring and demand transparency, rather than undermining development initiatives.
The CRG concluded its statement with a call for national unity: “Infrastructure is not a party issue. Roads, electricity, and agriculture affect us all. Let’s debate with facts and patriotism, not propaganda.”
Content Credit: Oyedepo Oluwafifedoyinsola
Image Credit: tribuneonlineng.com
