Nigeria seeks about $22.5 billion to finance 164 projects ―FG

NIGERIA is seeking the support of private, bilateral and multilateral investors to fund its investment commitments by the year 2020.

And the African Development Bank (AfDB) said it will assist the country to bridge its infrastructure investment gap, estimated at about N3 trillion in the next 26 years.

The $22.5 billion according to Co-coordinator, Economic Recovery and Growth Plan (ERGP) Mr Folarin Alayande would cover 164 projects, spread over six geo-political zones.

He said the Federal Government had identified key priority projects that would spur sustainable growth in the country.

The investment focus of the country Folarin noted was in the areas of Agriculture and Transportation, Manufacturing and Processing, Power and Gas Supply.

At the Africa Investment Forum (AIF) Roadshow organised by AfDB in Abuja, Senior Director, AfDB Nigeria, Mr Ebrima Faal said that the idea for AIF came from the reality that government alone could not finance the infrastructure gap which was limiting the country from reaching sustainable development.

“Indeed, over the last decade, and despite impressive growth rates in most of the continent, Africa’s infrastructure needs remain formidable with annual financing gap between $130 billion and $107 billion annually.

“Nigeria’s infrastructure cumulative financing needs are estimated to reach $3 trillion dollars by 2044 or about $100 billion annually.

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“This is all happening at a time when public sector finances are extremely pressured.

“There is, therefore, a critical need to change the current funding mix and create partnerships to finance infrastructure and other projects in Africa,” he said.

Faal said AfDB would assist Nigeria put a pipeline of bankable projects together ahead of the Africa Investment Forum, to hold in South Africa in November.

“The African Development Bank is committed to the development of effective public-private partnerships and has been developing new innovative financing programs, instruments and partnerships.

“This is to facilitate the financing and construction of critical infrastructure in the continent.

“The AIF is an investment marketplace that aims to showcase key projects currently under development and assess how those projects will be financed, operated and delivered successfully to maximise efficiency and project success.

“The Forum has been designed to meet the needs of African stakeholders looking to capitalise on the increasing potential of multi-speaker partners and the growing investment appetite in Africa by investors,” he said.

Senior Director at AfDB in charge of the African Investment Forum Ms Stella Kilonzo also disclosed that the bank aims to de-risk investments in Africa through the forum.

She said that at the moment, Nigeria and Africa at large struggles to attract significant capital due to poor preparation and packaging of project proposals, limited availability of tools for credit enhancement and risk coverage among others.