Nigeria is preparing to release another $100 million to the ECOWAS Bank for Investment and Development (EBID) to advance major developmental initiatives across West Africa. This pledge underscores Nigeria’s dominant role as the institution’s largest shareholder and a driving force behind regional economic transformation.

The announcement came during the First Ordinary Session of the ECOWAS Parliament held in Abuja, where EBID’s leadership presented an overview of its activities, progress, and future goals to heads of ECOWAS institutions and specialized agencies.

Nigeria Remains EBID’s Largest Financial Stakeholder

According to Dr. George Donkor, President of EBID, Nigeria maintains a commanding share of roughly 33% of the bank’s equity capital, making it the leading financial contributor within the bloc. Represented at the session by the Director of Research and Strategic Planning, MacDonald Goanue, Donkor stated, “Nigeria is the biggest contributor to EBID. Nigeria is in the process of even paying 100 million dollars to the bank.”

This forthcoming contribution will add to Nigeria’s historical financial support for EBID, which serves as the regional financial arm of the Economic Community of West African States (ECOWAS).

Over $2.5 Billion Disbursed Since Inception

Since its establishment in 1999, EBID has disbursed more than $2.5 billion across the subregion, supporting nearly 300 projects in various sectors. These include energy, transport, healthcare, agriculture, education, and digital infrastructure. In 2024 alone, the bank approved 10 new projects valued at approximately $440 million (UA 330.76 million), while 21 additional projects were under appraisal.

This growing investment reflects EBID’s broader mission to serve as a catalyst for sustainable development, economic integration, and poverty reduction across the ECOWAS region.

Goanue emphasized the bank’s core development strategy: “We are focused on building strategic projects in infrastructure, renewable energy, agriculture, and human capital development to transform West Africa.”

Major Flagship Initiatives Across the Region

Among the flagship initiatives highlighted by the EBID President were critical regional infrastructure projects designed to boost connectivity and sustainable growth. Key developments include:

• A cross-border electricity interconnection project between Mali and Côte d’Ivoire;

• The provision of solar-powered electricity to 750 community institutions in Benin;

• The construction of a strategic bridge connecting AIBD to Blaise Diagne International Airport in Senegal.

These infrastructure projects not only strengthen regional cooperation but also pave the way for increased trade, improved public services, and economic diversification.

Strengthening Nigeria’s Domestic Economic Landscape

Beyond regional projects, EBID has also channeled substantial funds into Nigeria’s private sector. Partnering with the Bank of Industry and various commercial banks, the regional lender has supported domestic initiatives, particularly in small and medium-scale enterprises (SMEs), manufacturing, and agro-processing.

“EBID has done a lot in Nigeria through collaborations with commercial banks and other development institutions,” Goanue noted. These investments aim to enhance industrial capacity, generate employment, and spur inclusive economic growth.

Boosting MSMEs and Regional Economic Resilience

The bank has also expanded support for Micro, Small, and Medium Enterprises (MSMEs), recognizing their vital role in job creation and poverty reduction. This includes tailored financial instruments and credit facilities that help MSMEs scale operations, particularly in underserved areas.

According to Goanue, the number of projects receiving disbursements rose from 56 in 2023 to 77 in 2024. Although the annual loan disbursement rate dipped slightly from 21.58% in 2023 to 20.54% in 2024, the expansion of project coverage reflects EBID’s intensified engagement with member states.

Support from India Bolsters Long-Term Development

In addition to member state contributions, EBID has secured international support to bolster its operations. The Indian government has extended a financial facility worth approximately $1 billion to fund infrastructure, energy, and private sector development across West Africa since 2006.

These long-term concessional funds have played a pivotal role in supporting EBID’s broad-based development agenda, especially in critical sectors like transport and renewable energy.

EBID Not a Commercial Bank – Operations Rely on State Contributions

Donkor also clarified the nature of EBID’s operations, distinguishing it from traditional commercial banks. He noted, “EBID is not a commercial bank. It does not accept deposits. The bank relies on contributions from ECOWAS member states and financing from international development partners.”

This model allows EBID to focus on development finance rather than profit-making, aligning its objectives with ECOWAS’ broader goals of integration, stability, and sustainable economic growth.

Recent Financial Packages to Accelerate Regional Development

In a related development, EBID’s Board of Directors recently approved a financing package totaling €230 million and $10 million to accelerate regional development. A significant portion of this, $180 million, was earmarked as a credit line to Mota-Engil Nigeria to fund the Kano-Maradi standard gauge railway project.

This ambitious cross-border rail line will connect northern Nigeria with Niger, promoting regional trade, facilitating mobility, and fostering deeper economic integration between the two countries. The project is expected to generate over 100,000 jobs during its construction phase and provide 20,000 permanent roles once operational.

A Vision for a Prosperous and Integrated West Africa

Dr. Donkor reaffirmed that collaboration between EBID and the ECOWAS Parliament remains vital to achieving a unified and prosperous West African region. “Our partnership with ECOWAS Parliament is central to our mission. We believe that economic transformation, regional integration, and social upliftment go hand in hand.”

By leveraging member state contributions, strategic international partnerships, and focused project financing, EBID continues to drive tangible progress across West Africa. As Nigeria prepares to disburse an additional $100 million, its leadership role remains key to shaping the region’s development narrative.

With infrastructure expanding, MSMEs gaining access to critical financing, and regional energy networks coming online, EBID’s developmental footprint is growing. Through this collective effort, ECOWAS moves closer to its vision of economic stability, regional unity, and shared prosperity.