Nigeria has officially joined the European Bank for Reconstruction and Development (EBRD) as its 77th shareholder. This milestone follows Nigeria’s application in April 2024, which received approval from the EBRD’s Board of Governors in May 2024.
The EBRD, established in 1991, primarily focuses on fostering economic development in Central and Eastern Europe. Over the years, its reach has expanded to include countries in Asia, the Middle East, and North Africa. Nigeria’s accession aligns with the EBRD’s strategic decision at its 2023 Annual Meeting in Samarkand to amend its founding agreement, allowing for a phased expansion into sub-Saharan Africa and Iraq, pending ratification by its shareholders.
As a shareholder, Nigeria stands to benefit from the EBRD’s financial resources and policy support, which are geared toward sustainable development and infrastructure financing. This membership could pave the way for Nigeria to transition to recipient country status once the amendment is ratified, enabling access to investments and expertise aimed at bolstering economic growth.
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, expressed optimism about the partnership, stating that Nigeria’s membership in the EBRD opens up new avenues for investment and collaboration, which are essential for the nation’s development objectives.
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The EBRD’s engagement in sub-Saharan Africa represents a strategic shift to support emerging markets in the region. By integrating Nigeria into its fold, the EBRD acknowledges the country’s economic potential and the mutual benefits of such a partnership. This move is anticipated to enhance Nigeria’s infrastructure development, energy projects, and private sector growth through increased foreign investment and technical assistance.
However, the transition from shareholder to recipient country status is contingent upon the formal ratification of the amended agreement by the majority of EBRD shareholders. This process underscores the importance of collaborative international efforts in expanding the bank’s mandate to new regions.
