AfDB approves $200 million loan to boost Nigeria’s digital backbone, employment

The African Development Bank (AfDB) Group has approved a $200 million loan to support the expansion of Nigeria’s digital infrastructure and job creation across the country.

AfDB revealed this in a statement posted on its website on Saturday.

The bank said the loan will fund the Digital Value Chain Infrastructure to Enhance Employment (D-VIBE) Project, a flagship initiative aimed at closing the connectivity gap and strengthening Nigeria’s digital economy.

“Nigeria, the country with the largest population in Africa and the largest market in West Africa, is expected to benefit from increased broadband access, productivity and employment through this project.

“This initiative will expand the national fiber optic network from around 30,000 kilometers to around 120,000 kilometers, connecting all 774 Local Government Areas.

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“This expanded network will connect schools, health facilities, agro-industrial areas, rural communities and commercial centers with high-speed broadband services.

“It will also establish cross-border fiber connections with Benin, Cameroon, Niger and Chad to enhance regional digital integration,” the statement said.

According to the bank, D-VIBE, also known as Project BRIDGE, is structured as a public-private partnership through a Special Purpose Vehicle to accelerate implementation and attract private investment.

It said that public sector ownership would range between 25 and 49 percent, while private sector participation would reach 51 to 75 percent.

“The AfDB loan is part of the government’s $800 million financing package, along with $500 million from the World Bank and $100 million from the European Bank for Reconstruction and Development.

“Total project financing is estimated at two billion dollars, with additional support from private sector investment and development partners.

“A European Union grant of 22 million euros and a project preparation grant of 2.6 million dollars from the Center for Multilateral Cooperation for Development Financing are also included.

“The project is expected to create up to 2.8 million jobs over its life cycle and increase Nigeria’s broadband penetration from 45 percent to around 70 percent by 2030,” the statement added.

Meanwhile, the Director General of the AfDB Office in Nigeria, Abdul Kamara, said this project would open up cross-sector opportunities.

“From north to south, from farms to factories to classrooms, this investment will bring high-speed connectivity to every Nigerian community,” he said.

Kamara said the initiative will equip Nigeria’s young generation with the digital tools necessary to build sustainable livelihoods.

He added that the project will also address barriers to digital adoption through affordable devices, large-scale skills development and support for digital platforms.