President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has commended President Bola Ahmed Tinubu for authorizing a $500 million replenishment of the Nigeria Trust Fund (NTF), extending the facility for another 15 years.
Adesina expressed his appreciation on Tuesday during the opening ceremony of the AfDB Annual Meetings in Abidjan, noting the significance of Nigeria’s contribution to the Fund’s longevity and its developmental purpose across the continent.
‘To President Bola Tinubu, for your support over the past two years, I am profoundly grateful’, Adesina said. ‘Thank you for graciously approving the replenishment of the Nigeria Trust Fund for another 15 years for $500 million’.
The Nigeria Trust Fund was established in 1976 through an agreement between the Federal Government of Nigeria and the African Development Bank. Its creation reflected Nigeria’s commitment to advancing economic and social development across low-income countries within the African region.
The Fund operates as a self-sustaining revolving financing mechanism designed to assist low-income regional member countries whose development circumstances necessitate concessional funding.
Resources from the NTF are used to finance projects either jointly with the African Development Fund (ADF) and AfDB or as independent interventions across public and private sectors.
One of the defining features of the NTF is that it allocates funding to specific projects rather than earmarking funds for countries, setting it apart from the African Development Fund.
This targeted approach allows for strategic deployment of resources to initiatives with high developmental impact, ranging from infrastructure and agriculture to education and health.
The Fund’s structure is anchored in a legal arrangement where assets are held and managed by a trustee on behalf of its beneficiaries, ensuring transparency, sustainability, and accountability in resource application.
Over the decades, the NTF has supported critical development efforts in energy, transport, water supply and sanitation, and institutional capacity-building in several countries. It has also provided supplementary loans to Bank Group-financed projects, enhancing implementation and expanding project scope.
President Tinubu’s renewed commitment to the Fund is viewed as a reaffirmation of Nigeria’s leadership role in fostering continental development and promoting inclusive growth across Africa.
The $500 million replenishment is expected to bolster the Fund’s capacity to support transformative initiatives in countries grappling with limited access to finance and high development needs.
Adesina also extended gratitude to African heads of state, governments, and institutions that have supported his leadership and the Bank’s mission over the past decade.
He said, ‘May God bless the African Union and all the Regional Economic Communities, the private sector, civil society, youth and women of Africa, multilateral and bilateral institutions, partner institutions, and media organizations who supported us along the way.
‘Together, we collectively joined hands around the Baobab tree of Africa’s challenges and opportunities. Thank you all for believing in Africa. May Africa always thrive and shine, and may our light never grow dim’.
The AfDB Annual Meetings, currently taking place in Abidjan, bring together leaders, policymakers, development partners, and stakeholders to discuss pressing economic and development issues facing Africa.
This year’s gathering comes at a time when many African economies are recovering from the twin impacts of the COVID-19 pandemic and global economic shocks, with an increasing call for homegrown solutions and intra-African solidarity.
