The African Development Bank (AfDB) has invested $1.44 billion in Nigeria to support the development of key infrastructure sectors including energy and power, transport, water, and sanitation.
This significant funding was announced by the Director General of the Bank’s Nigeria Country Department, Lamin Barrow, during the Nasarawa Investment Summit 2024, held in Lafia, the capital of Nasarawa State.
The summit, which attracted both local and foreign investors, as well as representatives from the private sector and senior government officials, provided a platform to discuss and address the infrastructure deficit that Nigeria currently faces. The lack of proper infrastructure has been hindering the country’s efforts to diversify its non-oil production and achieve international competitiveness for exports.
To put this into perspective, Nigeria’s 2020 National Integrated Infrastructure Master Plan estimates that the country requires a total investment of $2.3 trillion between 2020 and 2043 to raise its infrastructure stock to the international benchmark of 70% of GDP. Specifically, the energy sector alone requires $759 billion, while the transport sector needs $575 billion.
In response to this challenge, the African Development Bank has been actively supporting the federal and state governments in Nigeria to improve the country’s infrastructure. Currently, 31% of the Bank’s active portfolio, valued at $1.44 billion, is dedicated to infrastructure development in Nigeria.
During the summit, Barrow emphasized the importance of accelerating domestic resource mobilization, boosting productivity in the agriculture sector, developing value chains and supportive infrastructure, enhancing investment de-risking measures, prioritizing natural resource value addition and beneficiation, strengthening institutional capacity, and bridging the skills gap to enhance youth employability. These efforts are crucial for achieving industrial renaissance in Nasarawa State and Nigeria as a whole.
Nasarawa State, known for its enormous potential in agriculture, has been prioritizing the development of agricultural value chains for key commodities such as sesame, rice, and ginger. This focus on organized commodity aggregation systems ensures the marketability and traceability of produce, contributing to the state’s economic growth.
The summit was inaugurated by Dr. Doris Nkiruka Uzoka-Anite, Minister of Industry, Trade and Investment, who represented Nigeria’s President, Bola Ahmed Tinubu. Uzoka-Anite commended Nasarawa State for its vision in developing and processing its lithium deposits, thus adding value to raw materials and aligning with the country’s renewed hope agenda.
The Governor of Nasarawa State, Abdullahi Sule, expressed his gratitude to the African Development Bank for its continued support in driving industrial and sustainable economic development in the state. Notably, the Bank has provided funding for the construction of the Keffi and Akwanga water supply schemes in Nasarawa, which include intake works, pumping stations, treatment plants, transmission and distribution pipes, as well as service reservoirs, drainage, and buildings.
Furthermore, Nasarawa State is currently being considered for participation in Phase II of the Special Agriculture Processing Zone (SAPZ) program in Nigeria, which aims to enhance agricultural productivity and value addition in designated zones.
The investment from the African Development Bank will undoubtedly contribute to Nigeria’s overall economic growth and development, as it addresses the critical infrastructure needs of the country. With improved infrastructure, Nigeria will be better positioned to diversify its economy, attract more investments, and enhance its global competitiveness.
