AfDB approves $200 million loan to strengthen Nigeria’s digital backbone and jobs

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

This can be read in a statement released on Saturday on the Bank’s website.

The bank said the loan will finance the D-VIBE (Digital Value Chain Infrastructure for Boosting Employment) project, a flagship initiative aimed at bridging connectivity gaps and strengthening Nigeria’s digital economy.

“Nigeria, Africa’s most populous nation and West Africa’s largest market, is expected to benefit from improved broadband access, productivity and employment under the project.

“The initiative will expand the country’s national fiber backbone from approximately 30,000 kilometers to approximately 120,000 kilometers, connecting all 774 local government areas.

“The expanded network will connect schools, healthcare facilities, agro-industrial areas, rural communities and shopping centers to high-speed broadband services.

“It will also establish cross-border fiber connections with Benin, Cameroon, Niger and Chad to promote regional digital integration,” he 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.

Public sector ownership would range between 25 and 49%, while private sector participation would represent between 51 and 75%.

“The AfDB loan is part of an $800 million sovereign financing package, in addition to $500 million from the World Bank and $100 million from the European Bank for Reconstruction and Development.

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

“Also included are a community contribution of 22 million euros and a contribution of 2.6 million dollars for project preparation by the Multilateral Cooperation Center for Development Financing.

“The project is expected to generate up to 2.8 million jobs over its lifecycle and increase broadband penetration in Nigeria from 45% to approximately 70% by 2030,” it said.

Meanwhile, Abdul Kamara, director general of the AfDB’s Nigerian office, said the project would open up opportunities across all sectors.

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

Kamara said the initiative would provide young Nigerians with the digital tools needed to build sustainable livelihoods.

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

It said it would also promote cybersecurity, improve market competition and encourage the use of renewable energy to ensure resilience and sustainability.

“The project is aligned with Nigeria’s Vision 2050, National Development Plan and Renewed Hope Agenda, as well as the African Union’s Agenda 2063.

“It also supports the AfDB’s 10-year strategy (2024-2033), which prioritizes inclusive growth and sustainable development across the continent,” he said.