Nigeria Trust Fund (NTF) The NTF is a self-sustaining revolving fund. Its objective is to assist the development efforts of the Bank’s low-income regional member countries whose economic and social conditions and prospects require concessional financing. Its initial capital of US$ 80 million was replenished in 1981 with US$ 71 million
The Nigeria Trust Fund (NTF) was created in 1976 by agreement between the Bank Group and the Nigerian government. The NTF is a self-sustaining revolving fund. Fundings in Nigeria
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Its objective is to assist the development efforts of the Bank’s low-income regional member countries whose economic and social conditions and prospects require concessional financing. Its initial capital of US$ 80 million was replenished in 1981 with US$ 71 million. In 2008, the Federal Republic of Nigeria and the Bank agreed to a ten-year extension of the NTF.
NTF resources can co-finance operations with the ADB and the ADF, as well as fund stand-alone operations, in both the public and the private sector. Supplementary loans for Bank Group financed projects can also be considered.
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A funding ceiling of US$ 10 million (approximately UA 6.5 million) per project applies. The NTF only provides concessional loans. Only low income countries are eligible to loans i.e. : classified with a moderate risk ” yellow ” or a low risk ” green ” according to the Debt sustainability framework jointly established by the World Bank and the IMF for low income countries.
NTF resources are allocated to projects, and not to countries (unlike the African Development Fund). Proposals concerning the poorest ADF countries, countries with small ADF allocations, and fragile states are particularly encouraged.
The last call for proposals was launched in 2015, approximately UA 18.5 million were available for projects to be approved by the Bank Group’s Board of Directors in 2016.
A call for proposal is launched annually in July. The next call for proposals will take place in July 2016 for projects that are ready and scheduled for Board approval in 2016 or early 2017, but with a financing gap.
NTF resources can be used for:
- Concessional loan operations with long-term maturity, to which the following financial terms apply:
- no interest charges;
- a service charge of 0.75 percent per annum on outstanding balances;
- a commitment fee of 0.5 percent per annum on un-disbursed commitments; and
- a 20-year repayment period with a 7-year grace period (i.e.: a total 27-year repayment period).
- Concessional loan operations with short-term maturity, to which the following financial terms apply:
- no interest charges;
- a service charge of 0.75 percent per annum on outstanding balances;
- a commitment fee of 0.5 percent per annum on un-disbursed commitments; and
- a 15-year repayment period with a 5-year grace period (i.e.: a total 20-year repayment period).
- Private sector operations. The financial terms are the same as the ADB private sector window, taking into consideration the provisions of the Bank Group’s policies and guidelines for private sector financing as well as the risk analysis of the project.
The Resource Mobilization and External Finance Department (FRMB) is the NTF focal point in the African Development Bank Group.
