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Nigeria has joined the European Bank for Reconstruction and Development (EBRD) as its 77th shareholder.
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This marks a significant step in strengthening global financial partnerships and increasing access to development funding for the country.
The government welcomed this new development stating that Nigeria’s inclusion in the European Bank for Reconstruction and Development (EBRD) will unlock new opportunities for funding and collaboration, and allow for acceleration of national development goals.
This membership was revealed through a press statement published on the bank website on Tuesday.
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It stated that after a critical evaluation of the submission made by Nigeria to join the Bank in April 2024, the request was approved by the Board of Governors. This was in May, 2024.
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However, for a country to become a recipient of the bank’s investments, there must be a formal acceptance of the amended rule from a majority of the Bank’s shareholders.
In 2023, At the Bank Annual Meeting in Samarkand, there was an amendment to the bank’s established agreement, allowing for a limited and incremental extension of its operations to the sub-Saharan Africa and Iraq region.
Once the process is completed, Nigeria will be eligible to benefit from EBRD financing and policy support.
Why it matters
As Africa’s largest economy that has been seeking new funding sources to drive its economic diversification agenda. By joining the European Bank for Development and Reconstruction, the country will:
- Finance major infrastructure projects such as roads, power, and transportation.
- Support sustainable development initiatives, including climate resilience and clean energy.
- Strengthen trade and investment ties with European markets.
Furthermore, the nation is already a member of the World Bank, African Development Bank (AFDB), and International Monetary Fund (IMF), its inclusion in the EBRD will further solidify its role in international finance.
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Reacting to the news of the inclusion in EBRD as 77th stakeholder, Odile Renaud-Basso, the bank’s president described the nation’s inclusion as a landmark moment, noting the country’s economic potential.
“I am very happy to welcome Nigeria, the most populous country in Africa, as a shareholder of the Bank. This is a landmark moment for the EBRD as we look forward to launching our activities in sub-Saharan Africa this year,” She said.
“With such large economic potential in the country, our objective will be to leverage our expertise in developing the private sector and conducting policy dialogue to support sustainable economic growth in the country,” She concluded.
Nigeria’s entry into the European Bank for Reconstruction and Development as its 77th shareholder marks an important milestone in its global financial journey. This could lead to joint initiatives between African and European economies, benefiting both regions. It will also boost investment, enhance economic stability, and strengthen international cooperation.
