27 September 2016
The Africa Development Bank (AfDB) is providing a $4.1 billion dollars lending support for Nigeria from 2016 to 2017.
Its president, Dr. Akinwumi Adesina, said in Abuja on Monday that the bank had met with Vice-President Yemi Osinbajo, the economic management team as well as other cabinet members to discuss the challenges facing Nigeria.
He explained that diversification was not a problem for Nigeria, adding that the economy was well diversified.
“All in all we have a portfolio of 4.1 billion dollars from 2016 to 2017 but we intend to raise it to a portfolio of 10 billion dollars in 2019.
“Times are hard in Nigeria but I want to assure you that Nigeria does not have debt crisis but revenue challenge.
“The problem that Nigeria faces is that of low productivity and low revenue earning profile.
“It will take more than government to come out of recession and we believe strongly that the private sector has an important role to play.
“So what is needed for Nigeria is not only to spend its way out of recession but to incentivise its way out of the recession,” Adesina said.
He commended President Muhammadu Buhari for the measures already taken to ensure economic growth, especially the devaluation of the Naria and the removal of fuel subsidy.
According to him, the bank is going to give a general budget support facility for Nigeria for 1 billion dollars to help the government to deal with the current revenue situation.
“We are going to be supporting the agricultural sector; we plan to invest 300 million dollars in agriculture using the youth to develop a new generation of commercial farmers.
“Our goal is to create 1000 youth entrepreneurs in agribusiness per state of the federation, making a total of 37,000,” he added.
Adesina said that the bank would provide 250 million dollars for the northeast integrated infrastructure development programme to support the rehabilitation of the region.
He added that the focus would be on water, health, sanitation, artisanal skills, entrepreneurship and social amenities for IDPs.
Adesina said that the bank would also provide 200 million dollars to support agriculture through the agricultural transformation agenda support programme.
He said that the bank would provide 300 million dollars for Abuja infrastructure project to provide water, sanitation, roads and electricity in four satellite towns of Abuja.
“Nigeria is facing headwinds but with the right incentives, the country can get out of the recession with a more balanced economy.
“Nigeria must reap the dividends of Naria devaluation, for the country needs to incentivise its way out of recession,’’ he stressed.