Accra, Ghana, January 22, 2018//-African Development Bank (AfDB) has invested a whopping amount of $6 billion into Nigeria’s economy, according to the President of the bank, Akinwumi Adesina.
This figure is expected to increase to $8 billion by 2019, he said.
“You can tell by our level of investments in Nigeria to the tune of $6 billion. From our perspective, our investments can only increase, as we expect levels to reach $8 billion by 2019”, Dr Adesina told a large audience of senior government officials, private sector, and development agencies at the commissioning of the bank’s world-class office complex in Abuja, Nigeria.
Break down of investments
“We have invested $500 million in the Development Bank of Nigeria. We expanded private equity investment in agriculture. We put in $18 million into the Fund for Financing Agriculture in Nigeria (FAFIN). This year, we will be investing $200 million in the Transmission Company of Nigeria to support the rehabilitation of existing transmission lines in partnership with the World Bank”.
We’ve invested $100 million in the Mainstream Power IPP in Jebba and Kanji, to add 700 MW to the national grid, Dr Adesina added.
“Our private sector investment includes $300 million in Dangote Industries to promote refining of petroleum products, and $100 million to support Indorama Eleme Fertilizer Company as part of a $1.2 billion syndicated financing package that will produce 1.4 million MT of fertilizers, and expect to generate $2.1 billion in export earnings over the project life”.
He continued: “We invested over $134 million in Olam in agriculture. We are providing $263 million toward the rehabilitation of basic livelihoods in the North East, with the expectation of providing water, sanitation, hygiene and health services that will impact 14 million people, including 1.9 million Internally Displaced Persons”.
“Our support of $85 million to the Lekki Concession Company helped construct the 50 km Lekki-Epe expressway. This was the first Public-Private Infrastructure partnership in Nigeria. We look forward to supporting additional infrastructure”.
The bank’s support also extends to the financial sector. Several Nigerian banks have benefitted from $1.8 billion in lines of credit, including Access Bank, Fidelity Bank, Stanbic IBTC, First Bank, WEMA bank, Zenith Bank, GT Bank, the Bank of Industry, Bank of Agriculture and NEXIM, Dr Adsina stated.
The new banking complex
“This edifice (the newly opened office) further beautifies our enormous investments in Nigeria – and is very befitting for Nigeria. As you have noticed, the building’s colour is green. Green means prosperity. It is indeed my prayer that Nigeria itself will prosper and the African Development Bank will be there, always, as a strategic partner in Nigeria’s prosperity”.
Nigeria’s prosperity is always shared with other African countries. Nigeria’s establishment of the $500 million Nigeria Trust Fund at the Bank has supported many African countries and remains a key part of the Bank Group.
“Nigeria’s share capital at the Bank will continue to be crucial. As we look towards a general capital increase for the Bank, we look to Nigeria’s strong support. This building makes a bold statement: Specifically, that the African Development Bank is here to stay in Nigeria”.
“It sends a strong message that the African Development Bank appreciates Nigeria. And it sends a message that Nigeria’s place in the integration of Africa, especially in West Africa, cannot be ignored. We cannot ignore the fact that Africa’s largest economy is now out of recession and projected to grow at 2.3% this year”.
This building has unique importance. It is the first time that the African Development Bank has built an office complex outside of its headquarters in Abidjan, since its beginning in 1964. It is therefore wonderful that the Bank’s first ever purpose-built building would find a home in Nigeria, for we must give honour to whom honour is due. After all, Nigeria is the largest shareholder of the African Development Bank.
Stablising the Africa’s largest economy
According to Mr Adesina, their support went beyond money: it demonstrated our strong commitment to help stabilize Africa’s largest economy.
He said: “As my dear sister, the Minister of Finance, Kemi Adeosun, told us last week in Abidjan when I convened meetings of African Ministers of Finance, the crucial and timely support of the African Development Bank is what helped Nigeria recover from the recession”.
To this Dr Adesina assured that the African Development Bank would not relent in supporting Nigeria in critical areas to boost growth, diversify the economy and create jobs.
This includes support for youth in agriculture, small and medium-sized enterprises and the financial sector. We will accelerate support for infrastructure and the energy sector, he stressed.
“Our investments are structured around our High 5 priorities: Light up and power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the quality of life for the people of Africa”.
In a speech, the Vice President of Nigeria, Prof Yemi Osinbajo said: “More importantly, the Bank is to be commended for its ongoing efforts to close the gender gap, empower women and youths, and to ultimately strengthen and expand social safety nets for our most vulnerable populations”.
“With its large market of over 185 million people, Nigeria will continue to be an important player in the Bank’s work, advancing efforts to boost regional integration within the Economic Community of West African States (ECOWAS) in particular and Africa as a whole”.
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