Phillipe Valahu, Chief Executive Officer of the Private Infrastructure Development Group, has emphasised the need to unlock domestic institutional capital to drive infrastructure development in Nigeria, highlighting credit enhancement, regulatory reform, and stronger project preparation as critical enablers.

In an interview, Valahu outlined how innovative financing tools and public-private partnerships (PPPs) can bridge Nigeria’s infrastructure funding gap while aligning with national development priorities.

Credit Enhancement Driving Investment

Valahu explained that many infrastructure projects in Nigeria face a “rating gap,” where viable projects are considered too risky for institutional investors like pension funds.

He noted that credit enhancement mechanisms, such as guarantees provided by entities like InfraCredit, help bridge this gap by assigning higher credit ratings to projects.

This approach enables three key outcomes:

• Credit substitution, where projects inherit stronger credit ratings
• Longer financing tenors, extending funding from typical five-year bank loans to 15–20 years
• Reduced foreign exchange risk through local currency financing

“These mechanisms make infrastructure investments more attractive and aligned with long-term funding structures,” he said.

Aligning with Nigeria’s Green Finance Agenda

Speaking on Nigeria’s Sovereign Green Bond issued in June 2025, Valahu described it as a significant step toward financing the country’s Energy Transition Plan.

However, he stressed that sovereign funding alone is insufficient.

“Scaling infrastructure financing requires more bankable private-sector projects and deeper participation from domestic investors,” he said.

PIDG, he added, is focused on supporting private-sector participation through technical assistance, concessional funding, and credit enhancement tools to boost investment in renewable energy, transport, and climate-resilient infrastructure.

Mobilising Africa’s $2 Trillion Domestic Capital

Valahu confirmed ongoing collaboration with the African Development Bank Group to mobilise domestic capital across Africa, including pension funds, insurance assets, and sovereign wealth funds.

He noted that efforts are underway to establish additional credit enhancement facilities across West and Southern Africa, with expected progress in the coming months.

Barriers to Unlocking Nigerian Capital

According to Valahu, three major barriers continue to limit infrastructure investment in Nigeria:

• Regulatory constraints, including limits on pension fund exposure
• Capacity gaps among local financial institutions
• Perceived investment risks

He cited data showing infrastructure debt default rates in Africa remain relatively low, arguing that the sector is often misclassified as high-risk.

Shift from Aid to Investment Mobilisation

Valahu called for a shift in global development finance from reliance on aid to a mobilisation model that attracts private capital.

He emphasised that public funds should be used strategically to unlock larger pools of private investment, noting that domestic capital in Africa remains underutilised due to regulatory and structural limitations.

Fixing PPP Challenges in Nigeria

On public-private partnerships, Valahu identified weak project preparation as a major reason many infrastructure deals fail to reach financial close.

He listed common issues including:

• Poor feasibility studies
• Unclear risk allocation
• Weak institutional capacity
• Misalignment with investor requirements

He noted that improving early-stage project design, strengthening transaction structuring, and incorporating blended finance solutions are essential to delivering bankable projects.

Outlook

Valahu maintained that Nigeria has strong potential to attract infrastructure investment if it can unlock domestic capital, strengthen regulatory frameworks, and improve project preparation standards.

He concluded that a coordinated approach involving government, investors, and development institutions will be key to accelerating infrastructure delivery and supporting long-term economic growth.

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The African Development Bank (AfDB) has approved a $3.9 million, two-year technical assistance project to support Nigeria and 12 other African countries in implementing their national energy plans under the Mission 300 initiative, aimed at expanding electricity access across the continent by 2030.

The approval, granted by the AfDB Board of Directors, was disclosed in a statement published on the bank’s website on Friday. The project is designed to help participating countries translate existing energy policies and commitments into concrete electricity connections for households, businesses and public institutions.

The initiative comes amid renewed efforts by African governments and development partners to close the continent’s electricity access gap, which continues to hinder economic growth, industrialisation and social development. Despite significant policy reforms and investment pledges in recent years, millions of Africans remain without reliable access to power.

According to the AfDB, the new intervention—known as the Africa Energy Sector Technical Assistance Programme (AESTAP) Mission 300 Phase II—will provide hands-on technical support to 13 Mission 300 countries over the next 24 months. Beneficiary countries include Nigeria, Chad, Gabon, Tanzania, Mauritania, the Democratic Republic of Congo, Kenya, Madagascar, Ethiopia, Malawi, Lesotho, Namibia and Uganda.

Explaining the rationale behind the project, the bank said many countries have already developed National Energy Compacts outlining how they intend to expand electricity access, reform power sector institutions and attract private investment. However, moving from documented plans to actual electricity connections has remained a major challenge.

Wale Shonibare, Director of Energy Financial Solutions, Policy and Regulation at the AfDB, said African countries have made “bold commitments” through their Energy Compacts, but additional support is needed to turn those promises into real outcomes.

“The focus now is on delivery—ensuring that households, entrepreneurs and communities actually gain access to electricity,” Shonibare said. He noted that the new phase of support would provide targeted technical assistance to help governments implement reforms, strengthen institutions and accelerate new connections.

Under the approved project, AfDB will support participating countries to improve electricity regulations, planning frameworks and tariff structures to unlock public and private investment. The initiative will also focus on strengthening power utilities to improve operational efficiency, reduce technical and commercial losses, and deliver more reliable electricity services.

In addition, the project will support improved data collection, research and cross-country learning through platforms such as the Electricity Regulatory Index and regional energy forums. The bank said expert advisers would be embedded within national Compact Delivery and Monitoring Units to help governments coordinate reforms, track progress and resolve implementation bottlenecks.

Mission 300 was jointly launched by the World Bank and the African Development Bank in January 2025, with the goal of providing electricity access to 300 million Africans by 2030. As part of the initiative, African countries were encouraged to develop National Energy Compacts serving as roadmaps for power sector reforms and investment mobilisation.

Over the past year, dozens of countries have launched these compacts, backed by political commitments from governments and pledges of support from development partners. However, the AfDB acknowledged that weak institutional capacity, regulatory gaps and financing constraints have slowed implementation in many countries.

The newly approved Phase II project builds on an earlier AfDB intervention. In December 2025, the bank approved about $1 million for AESTAP Mission 300 Phase I, which focused on helping countries establish and operationalise Compact Delivery and Monitoring Units within government structures. Phase II is expected to deepen that support by providing the technical expertise required to implement planned reforms and scale up electricity connections.

Beyond Mission 300, the AfDB has continued to expand its financial support for Nigeria and the wider region. In November, the bank approved a $500 million loan to the Federal Government of Nigeria to finance the second phase of the Economic Governance and Energy Transition Support Programme. It also approved a $100 million loan to the Emerging Africa and Asia Infrastructure Fund to boost sustainable infrastructure development across Africa.

The AfDB said the Mission 300 Phase II project would be implemented in close coordination with the World Bank, national governments and other development partners to ensure alignment, maximise impact and avoid duplication of efforts.

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The African Development Bank Group (AfDB) has approved a $500 million loan to Nigeria to fund the second phase of its Economic Governance and Energy Transition Support Programme.

The initiative is designed to strengthen Nigeria’s fiscal policies, modernize the energy sector, and advance the country’s climate action goals.

The approval, announced on Wednesday by AfDB spokesperson Alexis Adélé, was granted during a board meeting in Abidjan and covers fiscal years 2024 and 2025.

Three Key Pillars
The programme focuses on three main areas:

1. Fiscal Policy Reforms: Improving public financial management, enhancing transparency, and promoting efficient government spending.

2. Energy Sector Modernization: Expanding electricity access, reducing energy poverty, improving governance, and attracting private investment.

3. Climate Action: Supporting the National Energy Transition Plan, implementing energy-efficiency standards, and fostering climate adaptation and mitigation measures.

Abdul Kamara, Director-General of AfDB’s Nigeria Office, said the second phase will consolidate gains from the first phase and stimulate inclusive growth. “We aim to accelerate structural reforms in the energy sector while enhancing fiscal policy to boost non-oil revenues and expand fiscal space,” he noted.

Key Beneficiaries and Impact

The loan will benefit several federal agencies, including the Ministries of Power, Finance, and Environment, the Nigerian Electricity Regulatory Commission, the Federal Inland Revenue Service, the Debt Management Office, the Office of the Auditor General, and the National Climate Change Council.

Private sector investors are also expected to gain from improved opportunities in energy-related ventures, strengthening Nigeria’s investment climate.

As of October 31, 2025, AfDB’s active portfolio in Nigeria includes 52 projects with a total commitment of $5.1 billion, reinforcing the Bank’s long-term commitment to supporting economic reforms, sustainable energy, and a resilient Nigerian economy.

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The African Development Bank (AfDB) has verified the payment of N1.45 billion to 195 residents affected by the Ekiti Knowledge Zone (EKZ) project in Ekiti State.

The compensation, approved by Governor Biodun Oyebanji in June, followed an updated valuation of lands, economic trees, and assets across the 208-hectare project site in Ago-Araromi and Ijan-Ekiti.

The EKZ initiative aims to establish a modern city focused on innovation, ICT training, and knowledge-driven enterprises. AfDB officials, led by Social Safeguard Specialist Dr. Mohammed Hamadina and Environmental Safeguard Expert Uzoma Okoroafor, conducted a verification visit to ensure that all Project Affected Persons (PAPs) received their dues and that any concerns were addressed.

Hamadina emphasized the bank’s commitment to fairness and transparency, stating, “Any individual who loses property or livelihood to an AfDB-backed project must be adequately compensated in a way that uplifts and does not disadvantage them.” Okoroafor added that the project is designed to strengthen local development and economic growth in Ekiti State.

Governor Oyebanji’s Technical Adviser on Green Economy, Dr. Akinyemi Akinyugha, lauded the process, describing it as essential for accountability and ensuring only legally acquired lands are affected. Community leaders, including the Chairman of Ago Araromi Community, Ojo Bankole, and resident Aduloju Ayodeji, commended the transparency and thoroughness of the exercise.

The EKZ project is now progressing into the infrastructure development stage, reinforcing the state government and AfDB’s shared commitment to sustainable growth, youth empowerment, and community inclusion.

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Mauritanian economist and development finance expert, Sidi Ould Tah, has officially assumed office as the 9th president of the African Development Bank (AfDB) Group, succeeding Akinwumi Adesina after a decade of leadership. His election, held during the AfDB’s annual meetings in Abidjan, Côte d’Ivoire, saw him secure a decisive 76.18 percent of the votes, reflecting strong continental support.

In his inaugural speech, Tah pledged to steer the bank with a renewed focus on collaboration, reforms, and accelerated development, stressing that his administration will prioritise economic transformation, job creation, and social progress.

He expressed gratitude to President Alassane Ouattara of Côte d’Ivoire for hosting the historic swearing-in, as well as to President Mohamed Ghezouani of Mauritania for mobilising national support throughout his candidacy. Tah also acknowledged the contributions of AfDB governors, African leaders, civil society, and development partners who rallied behind his vision.

Promising to build on the foundation laid by his predecessors, he vowed to work “in a spirit of consultation and collegiality” to strengthen the AfDB’s role as Africa’s premier financial institution.

Tah highlighted debt management, climate resilience, peace-building, and sustainable development as urgent priorities, while pledging to bridge divides between vision and execution, public and private sectors, and urgency and bureaucracy.

Expanding AfDB’s Reach

Looking ahead, Tah announced plans to broaden the AfDB’s partnerships by engaging sovereign funds, pension funds, and private investors to scale up financing for Africa’s development agenda.

He outlined a 100-day action plan anchored on four priorities:

1. Listening to stakeholders, partners, and AfDB staff to align with real-world needs.

2. Fast-tracking reforms to improve efficiency and cut red tape.

3. Deepening partnerships with African and global institutions to mobilise capital.

4. Delivering solutions that expand access to finance, create jobs, and empower women and youth.

With these commitments, Tah positions the AfDB as a catalyst for inclusive growth and long-term prosperity across the continent.

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The African Development Bank Group (AfDB) has pledged $40 million to the Alliance for Green Infrastructure in Africa, Project Development Fund (AGIA-PD). This investment secures the Fund’s first close at $118 million.

This milestone marks a new phase in building Africa’s green infrastructure. The AGIA-PD is backed by a coalition of global and regional institutions. Partners include Germany’s KfW, the West African Development Bank (BOAD), the UK’s Foreign, Commonwealth & Development Office (FCDO), the Three Cairns Group, and the Soros Economic Development Fund.

AfDB’s contribution includes $20 million in grants, $10 million in commercial equity, and $10 million in junior equity from its Sustainable Energy Fund for Africa. This structure reduces early risks and draws in private investors.

“Through this $40 million, the African Development Bank is pioneering a model to unlock Africa’s green infrastructure potential,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure and Industrialisation.

He added, “Our blended-finance strategy will mobilise billions in private capital for low-carbon, climate-resilient infrastructure.”

The funds will be used alongside both emerging and experienced developers. The goal is to create a diverse pipeline of sustainable projects ready for investment.

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Governor Biodun Oyebanji presented the cheques on Tuesday to beneficiaries from Ijan, Awo, and Araromi Ekiti during a ceremony at the Governor’s Office in Ado-Ekiti.

Describing the EKZ as a “strategic economic initiative,” Oyebanji said the project aims to create a technology-driven hub for innovation, enterprise, and job creation. “The EKZ is expected to generate over 14,000 jobs, with a focus on opportunities for our youth,” he said.

The compensation package was initially pegged at N1.119 billion but was reviewed upward to N1.45 billion “in recognition of current economic realities,” the governor said.

“This gesture reflects our commitment to fairness, transparency, and inclusive development. We understand the importance of compensating affected persons adequately as we embark on a journey to reposition Ekiti’s economy,” he added.

The Ekiti Knowledge Zone is part of a broader infrastructure plan that includes the Ekiti Agro-Allied International Cargo Airport and the Ekiti Ring Road Project. Governor Oyebanji said these complementary projects are designed to support the viability of the knowledge zone and drive long-term development across the state.

To ensure transparency and fairness in the land acquisition and resettlement process, the state government partnered with Green Engagement Limited to implement the resettlement action plan.

Governor Oyebanji also credited the African Development Bank (AfDB) for providing technical support and funding for the EKZ project. He clarified that although the Federal Government guaranteed an $80 million AfDB loan, the funds are managed by the AfDB in partnership with the Ekiti State Development and Investment Promotion Agency and disbursed directly to contractors.

He also pledged additional support for vulnerable individuals affected by the project, including vocational training, oil palm agro-development initiatives, and social services.

Director General of EKDIPA and EKZ Project Coordinator, Ms. Lolade Olutola, reaffirmed the administration’s commitment to leaving no one behind. Traditional ruler Oba Adebanji Aladesuyi, the Onijan of Ijan Ekiti, described the project as “a comprehensive solution to Nigeria’s challenges.”

Speaking on behalf of the beneficiaries, Mr. Bankole Ojo expressed appreciation and assured the government of full community cooperation as the project moves into its implementation phase.

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Speaking at the 20th anniversary dinner of investment firm Chapel Hill Denham in Lagos, Adesina sounded the alarm over the country’s economic decline, describing a situation where citizens today are materially worse off than they were at the dawn of independence. In 1960, he noted, Nigeria’s GDP per capita stood at $1,847.

Though Nigeria maintains the title of Africa’s largest economy in terms of overall GDP, Adesina argued that this status conceals serious internal weaknesses: a fragile economic base, decades of inconsistent policies, reliance on crude exports, and underinvestment in critical sectors.

He contrasted Nigeria’s trajectory with that of South Korea, a nation that had lower per capita income than Nigeria in 1960, but has since soared to over $36,000 per person due to industrialization and innovation-driven policies.

“Being underdeveloped isn’t our destiny,” Adesina stated. “What’s missing is decisive, visionary action that transforms potential into progress.”

To steer Nigeria toward prosperity, he outlined five strategic priorities: universal access to electricity, world-class infrastructure, accelerated industrialization, tech-driven innovation, and globally competitive agriculture. He cited the Dangote Refinery as a prime example of the scale and ambition needed to shift Nigeria’s fortunes.

He also urged the mobilization of local financial resources such as pension fund assets and diaspora capital, to finance transformation. However, Adesina emphasized that financing alone won’t suffice. Strong institutions, consistent policies, and transparent governance must anchor any reform agenda.

Without such urgent structural shifts, he warned, Nigeria risks squandering its potential and failing its rapidly growing population, a troubling scenario as the nation races toward 2050.

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This new bank will support young people who want to start or grow their own businesses in Nigeria and across Africa. Dr. Akinwumi Adesina, AfDB President, made the announcement at the National Open University of Nigeria in Abuja.

Helping Young People Access Funds and Skills
This youth-focused bank won’t just hand out loans. It will also offer equity funding, business training, and support services. Dr. Adesina said entrepreneurship is the best way to fight unemployment. He noted that Africa has the world’s highest rate of entrepreneurship, with 22% of its working-age population starting businesses.

Targeting Key Growth Sectors
The bank will focus on sectors like agriculture, retail, services, and especially technology. Africa’s digital economy is expected to grow fast. It could add $180 billion to the continent’s economy by 2025 and $712 billion by 2050.

More Support Through the iDICE Programme
In addition to the youth bank, AfDB is also supporting the iDICE programme. This project targets digital and creative businesses in Nigeria. It has already received $614 million in funding from AfDB and other partners. These include France’s development agency, the Islamic Development Bank, and Nigeria’s Bank of Industry. The project aims to create over six million jobs and inject $6.4 billion into the economy.

Education Gap Remains a Big Challenge
While Africa is strong in entrepreneurship, Dr. Adesina warned that it is falling behind in education. Only 43% of African youth finish secondary school. In Japan, that number is nearly 99%. Just 10% of young Africans go to university, and less than 25% of them study science, technology, engineering, or math (STEM). In Japan, 30% of students are in STEM fields.

New Fund to Improve Tech and Science Education
To fix this gap, the AfDB is working with the African Union. Together, they plan to launch a $300 million fund. This money will help train young people in areas like artificial intelligence, robotics, and cloud computing.

Call for Stronger Infrastructure and Planning
Dr. Adesina also urged African leaders to build stronger economies. He said countries need better infrastructure, energy systems, and tech development. He warned that Africa lacks strong economic safety nets. More planning and self-reliance are needed to avoid future crises.

Praise for AfDB Leadership
At the event, Prof. Attahiru Jega, former INEC Chairman, praised Dr. Adesina. He called him a visionary and a strong voice for Africa on the global stage.

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In a statement on Sunday, the AfDB announced that groundbreaking ceremonies for the commencement of Phase 1 will be held on April 8 in Kaduna State and April 10 in Cross River State.

This landmark project, AfDB’s largest single-country programme to date, will be led by Nigeria’s Vice President, Kashim Shettima, and AfDB President, Dr. Akinwumi Adesina.

Construction will begin across eight key locations: Kaduna, Kano, Kwara, Cross River, Imo, Ogun, Oyo, and the Federal Capital Territory. 

“The initiative is being launched at a critical time as Nigeria intensifies efforts to diversify its economy and combat rising food insecurity,” the statement read. “Kaduna and Cross River States will lead this agricultural transformation, marking a pivotal shift in Nigeria’s approach to agribusiness and food security.” 

Unprecedented investment and scale 

According to the bank, “With an unprecedented investment of $538 million, SAPZ Phase 1 marks the African Development Bank’s largest programme in any African country to date, underscoring the scale and significance of this undertaking. 

The SAPZ initiative embodies President Tinubu’s commitment to strengthening food security, generating sustainable employment opportunities, and revitalizing peri-urban economies through innovative public-private partnerships.” 

• The statement also highlighted that it would ensure private sector partners design, develop, and operate these zones, establishing a sustainable blueprint for agro-industrial growth.

“This launch is expected to catalyse momentum for SAPZ Phase 2, with an additional 28 states already positioned to participate in this agricultural renaissance. 

The recent Africa Investment Forum in Rabat, Morocco, saw the bank secure an unprecedented $2.2 billion commitment for the Nigeria Phase 2 SAPZ, indicating strong confidence in the programme’s potential. 

“Lessons learned from the initial phase will be crucial for accelerating the implementation of this next stage, “it said.

Addressing Nigeria’s food security challenge 

The SAPZ initiative addresses Nigeria’s $4.9 billion annual food security challenge and the billions lost each year due to food insecurity. It represents a critical developmental priority and an undeniable economic imperative for the country.

Strategically designed to transform Nigeria into a global agribusiness leader, the programme effectively leverages co-financing and the specialized expertise of the private sector.

“The Special Agro-Industrial Processing Zone is about developing new economic zones across Africa, close to where farmers are. These zones have enabling infrastructure—power, water, roads, irrigation—and today, we’re investing over $3 billion in more than 11 countries,” Adesina explained.

He further emphasized that transformation without agricultural transformation is incomplete because agriculture touches the lives of people at the grassroots level.

 More insights  

The SAPZ Nigeria Programme employs a comprehensive three-pronged approach, focusing on infrastructure development, business environment enhancement, and skills development.

• It aims to establish robust infrastructure within the agro-industrial zones, strengthen institutional capabilities, support agricultural productivity, and attract private investment across diverse value chains.
• Strategically located in areas with high agricultural potential, these zones will be equipped with essential infrastructure and common services. They will also benefit from tailored policy incentives designed to seamlessly integrate agricultural and industrial businesses.

By clustering agro-processing activities within regions of significant agricultural advantage, the SAPZs will bring together producers, processors, aggregators, and distributors, thereby reducing transaction costs. Moreover, it will simultaneously drive productivity and foster enterprise development.

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