Nigeria Joins Asian Infrastructure Investment Bank

Nigeria has officially joined the Asian Infrastructure Investment Bank (AIIB).

During the Federal Executive Council (FEC) meeting on May 5, the President formally approved Nigeria’s full membership in the Asian Infrastructure Investment Bank.

Nigeria is a full member of the Asian Infrastructure Investment Bank after satisfying the legal, administrative, and financial processes necessary for accession. The federal government was initially invited to join AIIB in 2021.

As part of joining the Asian Infrastructure Investment Bank, Nigeria subscribed to 50 shares. Each is valued at $100,000, totalling a $5 million capital contribution.

Nigeria joins 18 African countries in tapping the AIIB’s $100 billion capital base. Of the 22 African countries approved as members, 19 hold full membership, and 3 designated prospective members.

With this move, Nigeria gains access to funding for critical infrastructure projects.

AIIB’s Shareholder Landscape

China is the largest single shareholder, holding 26.54% of voting power. Other major stakes include India at 7.58%, Russia at 5.96%, Germany at 4.14%, South Korea at 3.48%, and Australia at 3.44%.

Nigeria’s Role Within the AIIB

As a full member of the AIIB, Nigeria join the AIIB’s Board of Governors.

President Tinubu will appoint a representative (usually the Finance Minister or the Central Bank of Nigeria Governor) to this top body.

The roles of the Board of Governors include voting on loan approvals and advocating for development priorities.

Thus, Nigeria is entitled to full voting rights and governance participation alongside other sovereign members.

Launched in October  2016, China established the Asian Infrastructure Investment Bank to fund critical infrastructure projects.

With over 100 members, including Germany, the UK, India, and France, the AIIB is a credible player focused on funding infrastructure, energy, and connectivity across the Global South.

The AIIB offers an alternative channel to the World Bank and the International Monetary Fund.

Nigeria is now its newest and one of the bank’s most significant African members.

Africa’s Growing Role in the AIIB

With Nigeria’s accession, 19 African countries now hold full membership: Algeria, Benin, Djibouti, Egypt, Ethiopia, Ghana, Guinea, Ivory Coast, Kenya, Liberia, Libya, Madagascar, Morocco, Rwanda, South Africa, Sudan, Togo, Tunisia and Nigeria. Three others—Mauritania, Senegal and Tanzania—remain prospective members.

Why Nigeria Joined the Asian Infrastructure Investment Bank

Nigeria’s decision to join the Asian Infrastructure Investment Bank is for clear reasons. The federal government needs funding to address the country’s massive infrastructure deficit. Therefore, joining the AIIB will enable Nigeria to access long-term, low-interest loans for roads, railways, ports, and power projects—key areas where Nigeria struggles. Critical projects such as the Mambilla Power Project, Fourth Mainland Bridge, Port Harcourt–Maiduguri Rail Line, and Lagos–Calabar Coastal Highway could benefit from AIIB financing.

By joining the AIIB, Nigeria will diversify its funding sources beyond the West. Nigeria heavily depends on the International Monetary Fund and the World Bank for exchange rate & development funding, respectively. However, these institutions often impose strict conditions. Being a member of the AIIB allows Nigeria to obtain funding from an institution that imposes less political pressure.

Comparison of AIIB with the World Bank and the International Monetary Funds

How Nigeria’s AIIB Membership Compares to Other African Countries

Geopolitics of Joining the Asian Infrastructure Investment Bank

Nigeria’s rationale for joining the Asian Infrastructure Investment Bank is not difficult to parse. The country faces a profound infrastructural backlog, limited fiscal space, and dwindling options in the capital markets.

According to the African Development Bank, the federal government must invest over $2.3 trillion between 2020 and 2043. The aim is to bring the country’s infrastructure stock to 70% of GDP, the level required to support economic growth.

Thus, full AIIB membership enables Nigeria to apply instantly for project loans. Unlike commercial borrowing, AIIB loans commonly feature 15‑ to 20‑year maturities with 5 to 7-year grace periods.

Also, the AIIB credits comprise fixed interest rates often below global market benchmarks. Such terms allow capital‑intensive infrastructure, where construction timelines extend over many years and revenue streams take time to emerge.

Nigeria’s AIIB membership comes as the United States reduces contributions to the African Development Bank. Therefore, diversifying away from the World Bank, IMF, and AFDB reduces Nigeria’s exposure to geopolitical shifts.

Despite the promise, threats persist. Nigeria already has a high debt load ($94.2 billion, as of December 31, 2024), with a GDP falling from $500 billion in 2014 to $188 billion in 2025. Therefore, additional loans could worsen the country’s debt profile.

Given that AIIB loans are denominated in US dollars, Nigeria is exposed to exchange rate volatility, especially amid low oil revenues due to lower oil prices.

If projects fail to yield expected returns, the federal government will struggle with repayment, risking debt distress.

China is Nigeria’s largest infrastructure lender, so overdependence on AIIB loans could result in a loss of policy autonomy.