The African Development Bank Group, AfDB, has approved a 200 million dollar loan to support Nigeria’s digital infrastructure expansion and job creation efforts.
This is contained in a statement released on the Bank’s website on Friday.
The bank said that the loan would fund the Digital Value Chain Infrastructure for Boosting Employment (D-VIBE) Project, a flagship initiative aimed at closing 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 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.
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 public sector ownership would range between 25 and 49 per cent, while private sector participation would account for 51 to 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.
Meanwhile, Abdul Kamara, Director-General of AfDB’s Nigeria Office, said that the project would unlock opportunities across sectors.