The African Development Bank Group (AfDB) has approved a 200 million dollar loan to support the expansion of Nigeria’s digital infrastructure and drive job creation across the country.
This development was disclosed in a statement published on the bank’s official website on Friday.
According to the bank, the funding will be used for the Digital Value Chain Infrastructure for Boosting Employment (D VIBE) Project, a major initiative designed to improve connectivity and strengthen Nigeria’s growing 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 fibre backbone from about 30,000 kilometres to approximately 120,000 kilometres, connecting all 774 Local Government Areas.
“The expanded network will link schools, health facilities, agro industrial zones, rural communities and commercial hubs to high speed broadband services.
“It will also establish cross border fibre connections with Benin, Cameroon, Niger and Chad to boost regional digital integration,” it said.
The bank explained that the D VIBE initiative, also called Project BRIDGE, will be executed through a public private partnership model. This will involve the creation of a Special Purpose Vehicle to ensure faster delivery and attract investments from private players.
Under this structure, the public sector is expected to hold between 25 and 49 per cent ownership, while the private sector will control between 51 and 75 per cent.
“The AfDB loan forms part of an 800 million dollar sovereign financing package, alongside 500 million dollars from the World Bank and 100 million dollars from the European Bank for Reconstruction and Development.
“Total project financing is estimated at two billion dollars, with additional support from private sector investments and development partners.
“An EU grant of 22 million euros and a 2.6 million dollar project preparation grant from the Multilateral Cooperation Center for Development Finance are also included.
“The project is expected to generate up to 2.8 million jobs over its lifecycle and increase Nigeria’s broadband penetration from 45 per cent to about 70 per cent by 2030,” it said.
In his remarks, Abdul Kamara, Director General of AfDB’s Nigeria Office, noted that the project would open up new opportunities in different sectors of the economy.
“From the north to the south, from farms to factories to classrooms, this investment will make high speed connectivity a reality for every Nigerian community,” he said.
Kamara added that the initiative would empower young Nigerians with the digital skills and tools required to earn a living in today’s economy.
He also stated that the project would tackle key challenges affecting digital adoption by making devices more affordable, supporting large scale training programmes and strengthening digital platforms.
In addition, the project will enhance cybersecurity, improve competition in the market and promote the use of renewable energy to ensure long term sustainability.
“The project aligns with Nigeria’s Vision 2050, National Development Plan and Renewed Hope Agenda, as well as the African Union’s Agenda 2063.
“It also supports AfDB’s 10 Year Strategy (2024 to 2033), which prioritises inclusive growth and sustainable development across the continent,” he said.
