Member's Documents
Evaluation of the Nigeria Trust Fund
Published by: Independent Development Evaluation, African Development Bank
Covering January 2009 to September 2024, the evaluation assessed 23 NTF-funded operations worth UA 125.5 million (USD 166 million) across 16 countries. The main objective was to provide Bank Management, the Board and the Nigerian authorities with evidence on the management, effectiveness, and efficiency of NTF-funded projects, approved since the NTF Operational Guidelines came into force in December 2008.
The evaluation found that the NTF played a valuable "gap-filling" role by complementing African Development Fund (ADF) resources in low-income countries and responding flexibly to urgent project needs. The efficiency and effectiveness of NTF-funded projects were rated satisfactory. However, challenges such as the Fund's limited scale, restrictive funding terms, structural design, and low visibility reduced its relevance and impact. These challenges also raise questions about whether the NTF offers a sufficient value proposition to justify its retention as a standalone financing window.
Key lessons from the evaluation include: (i) the added value of the NTF's “gap-filling” role for project implementation; (ii) larger funds benefit from investment opportunities and lower transaction costs; and (iii) limited visibility hampers the Fund’s financing and investment potential.
The evaluation recommends: a strategic dialogue between the Bank and the Nigerian authorities on whether the NTF should continue operating as a standalone financing window within the Bank Group or be integrated into alternative mechanisms; enhancing its role, effectiveness, and efficiency; and improving the Fund’s visibility and communication for increased awareness and effective domestic resource mobilization.
