AFDB earmarks $10bn loan for Nigeria’s infrastructure development

The African Development Bank (AfDB), through its transport sector identification mission, has disclosed plans to support the Federal Roads Maintenance Agency (FERMA) with loan facility to address the funding gap in the road repair efforts of the Agency.

The funding is coming from a support of $10billion set aside by the bank for Nigerian Infrastructure Development.

Dr. Abayomi Babalola, a transport Specialists /Consultant made the disclosure when he led a delegation on a visit to FERMA headquarters, Abuja.

According to him, the loan will be disbursed to different sectors of the economy for a period of 10 years.’

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He, however, observed that the transport sector had not received much-desired intervention from the bank adding that the visit was to identify road projects in Nigeria that can be funded through a well-monitored project circle.

According to him, the projects would be of national priority and devoid of political encumbrances.

In his response, the Managing Director FERMA, Engr. Nuruddeen Rafindadi who commended the gesture, however, lamented the poor state of roads as a result of poor funding.

According to him, budgetary allocation has been grossly inadequate to fund road repair works.

He said:”when the Ministry of Finance approves the loan arrangement, AfDB should be assured of good execution of the job. Some of the Roads that would benefit from this may not be viable for Privatization, because of low traffic density, but they are important due to their connection to rural areas with heavy Agricultural activities.”