OFID: Nigeria pledged $249.8m for projects in low, middle income countries in 2023

The OPEC Fund for International Development (OFID) says Nigeria pledged $249.8 million in 2023 to support development projects in low- and middle-income countries across the globe.

The financial commitment is said to be part of Nigeria’s broader efforts to contribute to global development, particularly in countries that face significant economic challenges.

The OFID finances critical projects in sectors such as energy, agriculture, and education, focusing on fostering economic growth and reducing poverty.

Nigeria’s $249.8 million commitment comes at a time of significant fiscal challenges and the protracted foreign exchange crisis the West African nation.

With a debt service to revenue ratio of 73.5 percent, analysts have consistently expressed worry over Nigeria’s fiscal stability. On June 20, the DMO described the situation as unsustainable and a threat.

Speaking on Nigeria’s contributions in its latest annual report, the OFID said out of the $249.8 million pledged by Nigeria, $228.2 million had been paid by the end of December 2023 — representing 91.37 percent of the total commitment.

The report also clarified that the Organization of the Petroleum Exporting Countries (OPEC) is not a member of the OPEC Fund.

“The two organizations do not have the same membership and are separate entities with their own unique mandates and tasks,” the report reads.

At the ministerial level of the fund, Nigeria is represented by Wale Edun, the minister of finance and coordinating minister of the economy.

The country’s governing board is represented by Okokon Ekanem Udo, permanent secretary, and George Nyeso Stanley, director of the international economic relations department, both from the federal ministry of finance.

Other members of the OFID include Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Saudi Arabia, the United Arab Emirates, and Venezuela.

Among the member nations, Saudi Arabia made the largest contribution in 2023, pledging $1.1 billion, according to the report.

Iran followed with $529.4 million, while Venezuela and Kuwait contributed $481.8 million and $380.2 million, respectively.

Analysis of the report showed that other significant contributions came from Libya ($211.0 million), the United Arab Emirates ($174.2 million), and Iraq ($154.8 million).

In addition, Algeria committed $105.6 million, Indonesia $13.1 million, Ecuador $7.2 million, and Gabon $3.8 million.