The African Development Bank (AfDB) has announced a significant investment of $1.44 billion to support the development of critical infrastructure in Nigeria. This funding will be directed towards improving the country’s energy and power, transport, water, and sanitation sectors.
Announcement at Nasarawa Investment Summit
The announcement was made by AfDB President Akinwunmi Adeshina, represented by Lamin Barrow, Director-General of the AfDB’s Nigeria Country Department, at the Nasarawa Investment Summit 2024. The summit took place on May 15-16 in Lafia, the capital of Nasarawa State.
Addressing Nigeria’s Infrastructure Deficit
Adeshina highlighted Nigeria’s substantial infrastructure deficit, which hampers the nation’s efforts to diversify its economy and enhance its global competitiveness. He referred to the 2020 National Integrated Infrastructure Master Plan, which estimates that Nigeria requires $2.3 trillion in total infrastructure investment from 2020 to 2043 to reach the international benchmark of 70% of GDP.
Sector-Specific Investment Needs
The energy sector requires the largest share of this investment, with a need for $759 billion. The transport sector also demands significant financial input, estimated at $575 billion.
AfDB’s Active Support
Barrow emphasized AfDB’s commitment to supporting both federal and state governments in Nigeria to enhance infrastructure. He noted that as of April 2024, 31% of the Bank’s active portfolio, valued at $1.44 billion, is dedicated to infrastructure development in Nigeria.
Federal Government’s Response
Dr. Doris Nkiruka Uzoka-Anite, Minister of Industry, Trade and Investment, representing President Bola Ahmed Tinubu, opened the summit. She praised Nasarawa State for its achievements, particularly in the mining and agricultural sectors. Uzoka-Anite highlighted Nasarawa’s focus on developing agricultural value chains and processing its vast lithium deposits to add value domestically.
Support from Nasarawa State Governor
Nasarawa State Governor, Abdullahi Sule, expressed his gratitude to the AfDB for its continuous support in fostering industrial and sustainable economic growth. He mentioned specific projects funded by the AfDB, such as the Keffi and Akwanga water supply projects, which include comprehensive infrastructure to improve water supply in the state.
Summit Attendance
The summit attracted local and foreign investors, private sector representatives, and senior government officials, indicating broad interest and support for the state’s economic development initiatives.
This substantial investment by the AfDB is poised to significantly enhance Nigeria’s infrastructure, fostering economic growth and improving the quality of life for its citizens.