Nigeria Trust Fund (NTF)

The Nigeria Trust Fund (NTF) is a 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. 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. The capital at the end of 2010 was US$ 200 million (approximately UA 128.5 million).  

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. A funding ceiling of US$ 10 million (approximately UA 6.4 million) per project applies. Supplementary loans for Bank Group financed projects will also be considered. 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;
• 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-disburse commitments; and
  • a 15-year repayment period with a 5-year grace period.
• Private sector operations. The financial terms are the same terms as the ADB private sector window would apply, taking into consideration the provisions of the Bank Group policies and guidelines for the Bank’s private sector financing as well as the risk analysis of the project.