Nigeria Trust Fund (NTF)

The Nigeria Trust Fund (NTF) is a special ADB fund created in 1976 by agreement between the Bank Group and the Nigerian government. 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.

The NTF became operational in April 1976 following approval of the agreement establishing the Nigeria Trust Fund by the Board of Governors. Its initial capital of US$80 million was replenished in 1981 with US$71million. In April 2003, the ADB Board of Governors considered and approved a number of proposals aimed at enhancing the effectiveness of the NTF. These proposals included:

  • adjusting the interest rate for NTF loans from 4 percent to a 2-4 percent range, to increase concessionality;
  • allocating 10 percent of NTF annual net income as contribution to the HIPC Trust Fund;
  • appropriating NTF corpus resources to finance activities under the Technical Cooperation Agreement with the Bank Group to support programmes benefiting its regional member countries;
  • introducing more flexibility in the investment of NTF resources, pending their use in financing projects.

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