AfDB Announces $1.44 Billion Investment To Support Nigeria’s Infrastructure Development

The African Development Bank (AfDB) has committed $1.44 billion to boost Nigeria’s infrastructure.

This investment will target the energy, power, transport, water, and sanitation sectors, as announced at the Nasarawa Investment Summit 2024.

Akinwunmi Adesina, President of AfDB, made this announcement via Lamin Barrow, Director-General of AfDB’s Nigeria Country Department, at the summit held in Lafia, Nasarawa State.

“Nigeria faces a huge infrastructure deficit, which hampers its efforts to diversify non-oil production and achieve international competitiveness,” said Barrow, quoting Adesina. He highlighted the urgent need for infrastructure investment, referencing the 2020 National Integrated Infrastructure Master Plan, which estimates that Nigeria requires $2.3 trillion in infrastructure investments from 2020 to 2043.

The energy sector demands the largest share of this investment, requiring $759 billion. The transport sector also needs significant financial input, estimated at $575 billion.

“To address this problem, the African Development Bank is supporting federal and state governments to improve infrastructure. As of April 2024, 31 percent of the Bank’s active portfolio, valued at $1.44 billion, is dedicated to infrastructure development in Nigeria,” Barrow stated.

Dr. Doris Nkiruka Uzoka-Anite, Nigeria’s Minister of Industry, Trade, and Investment, spoke at the summit, representing President Bola Ahmed Tinubu. She praised Nasarawa State for its achievements, particularly in mining and agriculture.

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“Nasarawa is known for its huge potential in agriculture, especially its organized commodity aggregation system, which ensures the marketability and traceability of produce. It is reassuring to note that Nasarawa prioritizes the development of agricultural value chains for key commodities such as sesame, rice, and ginger,” she said.

Dr. Uzoka-Anite also highlighted Nasarawa’s efforts in lithium development, aligning with the government’s agenda to add value to raw materials before export.

Nasarawa State Governor, Abdullahi Sule, expressed gratitude for AfDB’s ongoing support. He detailed AfDB-funded projects, including the Keffi and Akwanga water supply projects, which feature intake facilities, pumping stations, a treatment plant with a capacity of 62,850 m3/day, extensive transmission and distribution pipelines, service reservoirs, and drainage systems.

“The support from AfDB has been crucial for our state’s development. These projects not only improve our infrastructure but also promote industrial and sustainable economic growth,” said Governor Sule.

The Nasarawa Investment Summit 2024 brought together local and foreign investors, private sector representatives, and senior government officials, all focused on fostering investment and development in Nigeria.

AfDB’s substantial investment in Nigeria’s infrastructure is a significant step towards addressing the country’s infrastructure deficit and supporting its economic diversification efforts.