BY VICTORIA ONU, ABUJA
The African Development Bank, on Tuesday, said it would work with like-minded development partners and financial institutions to drive private sector participation and investments in the Nigerian economy.
The AfDB said it would deploy direct lending, equity participation, de-risking facilities, and the Africa Investment Forum platform, to support the Federal Government and other key stakeholders.
It noted that the construction of the Lagos-Ibadan highway, which is expected to commence from next year, would unlock 85 per cent of trade within the ECOWAS sub-region.
The AfDB President, Dr. Akinwumi Adesina, gave the indication on Tuesday as a panelist at a one-day investors Webinar to showcase the investment opportunities from the Federal Government’s reform and privatization activities.
Adesina said while the Federal Government had spearheaded various reforms in the banking sector that enhanced the resilience of the financial system, there was need to stay the course in completing the reforms in order to restructure the energy sector.
Nigeria’s infrastructure deficit is one of the main constraints to industrial development and national competitiveness.
Estimates indicate that Nigeria’s infrastructure constraints cost the country around four per cent of its yearly Gross Domestic Product growth.
Given the huge amounts needed (about $100bn annually for the next 30 years), he said time had come to create an enabling environment for Public-Private Partnerships to close Nigeria’s infrastructure gap.
Adesina, who was represented by the Director-General, AfDB Group, Nigeria Country Department, Mr. Lamin Barrow, stated that the AfDB was supporting the government’s efforts in addressing the infrastructure deficit in Nigeria through development of both national and regional infrastructure.
In the energy sector, he said the AfBD’s support would help improve access and reliability of electricity supply by attracting private sector participation.
The $256m and $200m financing respectively for the Nigeria Transmission Expansion Project-1 and the Nigerian Electrification Project, he said, would contribute to strengthening of the transmission network and promote off-grid solutions.
He explained that the bank’s $430m support for the Enugu-Bamenda Road linking Nigeria and Cameroun, due for completion this year, would be a gateway for enhanced trade between West and Central Africa.
He added, “We are working closely with the ECOWAS Commission and the concerned countries to finalize the feasibility studies for the landmark Abidjan-Lagos Highway. We expect the construction of the corridor to commence next year. This highway will link 85 per cent of the trade volumes in ECOWAS.
“We are also supporting the rollout of new flagship programmes such as the Special Agro-Industrial Processing Zones and Nigeria Innovation Program (Digital Nigeria) to unleash the potential of the economy. These will be complemented by enhanced policy dialogue with a view to consolidate Nigeria’s strategic position as the bulwark for the regional economy.”
Attracting private sector participation is critical for mobilizing investment resources and ensuring sustainable operation and maintenance of public infrastructure assets.
To this end, the AfDB DG said governments should put in place adequate regulatory frameworks to treat infrastructure as an asset class and view privatisation as an opportunity to optimize underperforming assets.
“Privatisation and commercialisation of public enterprises should, therefore, be more than just a transaction but an institutionalized mechanism with a long-term perspective.
“They represent a new way of life/doing business to accelerate achievement of the SDGs, an inclusive society, and as tools for building dynamic and competitive economies,” he added.
