Nigeria, AfDB Review $6.2B Portfolio to Boost Projects, Lower Borrowing Costs

Nigeria and AfDB agreed to review Nigeria's $6.2 billion project portfolio comprising 55 public and private sector operations, aiming to identify implementation challenges, accelerate delivery and align with government priorities. Agreement reached Monday in Bangkok by Finance Minister Taiwo Oyedele and AfDB President Sidi Ould Tah on the sidelines of the 2026 IMF-World Bank Annual Meetings.

The review seeks to increase development impact from the partnership, ensure Nigeria meets its capital subscription obligations as the bank's largest shareholder, and address high borrowing costs for African countries. Discussions included AfDB's planned facility to help governments engage with credit rating agencies, improve sovereign ratings, and mechanisms like local currency transactions, trade insurance and credit enhancement to attract private capital. The bank also expects Ould Tah to visit Nigeria for talks with President Tinubu and other stakeholders to advance cooperation.

Stakeholders should watch for details of the AfDB credit rating support facility and the timeline for the portfolio review outcomes, which could affect financing costs for infrastructure and energy projects. For businesses and investors, the emphasis on local currency transactions and risk mitigation tools may present new opportunities. Will you monitor AfDB announcements for updated loan terms or consider how improved credit ratings might affect your financing options?

SOURCE: https://nairametrics.com/2026/10/13/nigeria-afdb-to-review-6-2-billion-project-portfolio/