By Samuel John, Abuja
The African Development Bank (AfDB) has projected that African countries will require about $811 billion each year to close development gaps and address critical socio-economic challenges.
The Director-General of AfDB’s Nigeria Country Department, Dr. Abdul Kamara, revealed this on Thursday at the 2025 annual conference of the Nigerian Economic Society (NES) in Abuja. He assured that the bank remains committed to supporting member states in achieving their development aspirations.
According to him, 24 transition states—countries with fragile economies—will need a minimum of $210 billion annually to tackle their peculiar challenges.
“Africa’s structural transformation alone demands financing of about $495.6 billion per annum, equivalent to 17 percent of the continent’s projected 2024 GDP,” Kamara said, citing the AfDB’s Mind the Gaps Report 2025.
He explained that the continent currently faces an annual financing shortfall of $402.2 billion, representing 13.7 percent of its GDP. For transition states, the figure is $144.1 billion yearly, accounting for 35.8 percent of Africa’s overall gap.
Factoring in climate change and water and sanitation needs, Kamara warned that the annual financing gap could surge by 69.1 percent to $680.3 billion.
“Though transition states contribute less in absolute dollar terms, their financing gap is higher in per capita and GDP terms, with a median gap of $225.5 and 42.7 percent of GDP, compared to $196.3 and 10.4 percent for non-transition states,” he explained.
On Nigeria’s economic outlook, NES President, Prof. Adeola Adenikinju, commended government reforms, noting their impact on the foreign exchange market, oil production, and fiscal discipline.
He said, “The economy has stabilized, capital markets are bullish, and the naira has become more stable. The government’s early bold decisions, though disruptive, are proving beneficial. For the first time, Nigeria is exporting refined petroleum products.”
Adenikinju, however, cautioned that the social impact of these reforms is still lagging. “Poverty, unemployment, and related social challenges remain pressing concerns,” he added.
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