The European Investment Bank (EIB), the EU’s lending arm for research and development, is preparing to commence operations in Nigeria by July 2025, aiming to foster innovation and economic growth through targeted investments in technology and sustainable development. The initiative, announced on May 12, 2025, in Abuja, marks a significant step in strengthening EU-Nigeria economic ties and supporting Nigeria’s burgeoning tech ecosystem.
The EIB’s Nigeria office, to be based in Lagos, will focus on financing research-driven projects in sectors like renewable energy, artificial intelligence, and agriculture, with an initial €500 million commitment over three years. The bank aims to support Nigeria’s National Development Plan (2021–2025), which prioritizes digital transformation and green energy. Nigeria, with a $477 billion GDP in 2024, is Africa’s largest economy, and its tech sector, valued at $5 billion, has produced unicorns like Flutterwave and Andela. The EIB’s entry follows successful pilot projects, including a €50 million loan to a Lagos-based solar energy firm in 2024, which powered 10,000 households.
The initiative targets collaboration with Nigerian universities, startups, and government agencies like the National Agency for Science and Engineering Infrastructure. A key focus is addressing Nigeria’s 33% unemployment rate by funding R&D that creates high-skill jobs, with an estimated 20,000 direct and indirect jobs projected by 2028. The EIB will also support climate resilience projects, such as flood-resistant agricultural technologies, critical in a country where 2024 floods displaced 600,000 people. Financing will include low-interest loans and grants, with 40% earmarked for women-led enterprises to promote gender equity.
Challenges include Nigeria’s bureaucratic hurdles and 25% lending rate, which deter foreign investment. The EIB plans to mitigate risks through partnerships with local banks and EU guarantees, ensuring project viability. The move aligns with the EU’s Global Gateway strategy, countering China’s $30 billion annual investments in Africa. Nigerian officials, including Finance Minister Wale Edun, welcomed the initiative, citing its potential to diversify the economy beyond oil, which accounts for 80% of export revenue. As preparations advance, the EIB’s operations could position Nigeria as a regional hub for innovation, provided implementation overcomes logistical and political obstacles.