The NTF was established by the federal government of Nigeria in April 1976 to assist the development efforts of the poorest and most indebted member countries of the ADB. The NTF is therefore a member of the ADB group – it is administered by the ADB in consultation with the Nigerian government. The NTF started with an initial capital of $80 million which grew to about $350 million in 1988.
The NTF loans are granted at a 4 per cent interest, grace period is 5 years, and the repayment period ranges between 15 and 25 years. Not less than 18 member countries of the ADB benefited from the NTF loan commitment. The loans were granted to finance projects in the social/educational, industrial and agricultural sectors in those countries.