Nigeria: AfDB Backs Nigeria’s Digital Infrastructure Drive with $200m Fibre and Skills Investment

The African Development Bank Group (AfDB) has approved a $200 million loan to support Nigeria’s nationwide fibre-optic expansion and digital skills development initiative, a move expected to accelerate job creation and strengthen the country’s digital economy.

The initiative, known as the Digital Value Chain Infrastructure for Boosting Employment (D-VIBE), aims to deploy 90,000 kilometres of open-access fibre infrastructure across the country. This will significantly expand Nigeria’s existing backbone network from 30,000 km to 120,000 km, reinforcing the foundation for digital innovation, compliance technology, and regulatory technology solutions.

According to the AfDB, the project will extend high-speed broadband connectivity to all 774 local government areas, covering critical sectors such as education, healthcare, rural communities, and commercial centres. The rollout will also include cross-border fibre links with neighbouring countries, enhancing regional integration and enabling more efficient regulatory reporting and data privacy frameworks across digital ecosystems.

The bank disclosed that the $200 million loan forms part of a broader $800 million sovereign financing package. Additional funding includes $500 million from the World Bank and $100 million from the European Bank for Reconstruction and Development (EBRD).

Overall, the total project cost is estimated at $2 billion, supported by a €22 million grant from the European Union, a $2.6 million project preparation grant from the Multilateral Cooperation Center for Development Finance (MCDF), and over $1.2 billion in expected private sector investment.

The project will be executed through a public-private partnership (PPP) model, leveraging a special purpose vehicle in which private investors will hold a majority stake. This structure is designed to address long-standing barriers to fibre deployment, including high right-of-way and construction costs, while promoting risk mitigation and sustainable infrastructure financing.

Speaking on the development, Abdul Kamara, Director-General of AfDB Nigeria, highlighted the critical role of digital infrastructure in unlocking economic growth. He noted that while Nigeria possesses strong human capital and market potential, inadequate connectivity has limited opportunities for innovation and enterprise.

The D-VIBE initiative is also positioned to support broader digital adoption by integrating skills development programmes, improving access to affordable devices, and strengthening digital platforms across key sectors. These efforts are expected to enhance compliance management systems, enable more efficient regulatory monitoring, and support the growth of the RegTech industry in Nigeria.

In terms of impact, the AfDB projects that the initiative could generate up to 2.8 million jobs throughout its lifecycle. Additionally, broadband penetration is expected to increase from the current 45 percent to approximately 70 percent by 2030, creating a more inclusive digital economy and supporting financial compliance, fraud detection, and anti-money laundering capabilities across digital platforms.

As Nigeria advances its digital transformation agenda, investments in infrastructure and skills development remain critical to strengthening regulatory frameworks, improving compliance analytics, and enabling scalable RegTech innovationsacross both public and private sectors.