African Development Bank and Partners Launch Innovative $70 Billion Infrastructure Funding Model Across Africa
Nigeria is spearheading a groundbreaking financing model aimed at unlocking billions of dollars for infrastructure projects across Africa. The initiative, developed in collaboration with the African Development Bank (AfDB) and other multilateral institutions, is designed to bridge the continent’s persistent infrastructure gap while enabling development lenders to extend more credit without straining their balance sheets.
Farooq Oreagba, Managing Director and CEO of NG Clearing Limited, explained that the innovative structure allows multilateral lenders to leverage funds significantly. “Previously, you could only put $20 billion on your balance sheet. Now, using this new model, that could expand to $50, $60, or even $70 billion,” he told LEADERSHIP on the sidelines of the 2025 IMF/World Bank Annual Meetings in Washington, D.C. The approach combines creative financial engineering with public-private partnership (PPP) models to attract sustainable investment flows.
The model has already captured the interest of key stakeholders, Oreagba said, emphasizing the critical role of government commitment and the rule of law in encouraging private investment. “The private sector wants to see that the government has skin in the game. When that happens, private capital follows quickly,” he noted. He revealed that discussions with multilateral and private investors began even before President Tinubu assumed office and are now entering advanced stages.
Oreagba stressed that the plan is not just a Nigerian solution but a pan-African framework aimed at helping developing markets attract long-term, sustainable capital. “Africa is about to open for business with a new solution to funding the infrastructure gap,” he said, adding that the initiative signals a shift toward greater international recognition of Africa’s economic potential.
Despite bureaucratic challenges, Oreagba expressed optimism that Nigeria’s economic reforms and innovative financing solutions could position the country as a top investment destination. He highlighted the enthusiastic response from international financiers during the Washington sessions and emphasized the need to convert accolades from institutions such as the IMF, World Bank, and AfDB into tangible improvements for citizens. “Ultimately, it is about being able to deliver on our promises,” he said.
source: Leadership