AfDB Warns Nigeria on Revenue and Infrastructure Needs

The African Development Bank (AfDB) has released its 2026 Country Focus Report on Nigeria, highlighting the country's weak domestic revenue base and persistently low productivity as significant economic constraints. The report indicates that Nigeria requires approximately $2.3 trillion in infrastructure investment by 2043 to elevate its infrastructure stock to about 70% of Gross Domestic Product (GDP), which is essential for sustained economic transformation.

The AfDB emphasizes that mobilizing such financing necessitates a stronger domestic revenue base, deeper financial markets, and more efficient capital utilization. The report also points out that Nigeria's economic challenges extend beyond financing availability to include structural weaknesses that hinder productivity, such as low agricultural productivity, weak manufacturing competitiveness, inadequate infrastructure, insecurity, and skills shortages.

Although Nigeria's debt-to-GDP ratio improved to about 50.2% in 2025, the AfDB cautions that the fiscal position remains constrained due to low government revenues compared to financing needs, with interest payments consuming an estimated 47.3% of federal government revenue in 2025.