The President of African Development Bank (AfDB), Dr. Akinwumi Adesina on Monday in Abuja said the bank has a portfolio of $4.1 billion dollars to support Nigeria’s new lending operations from 2016 to 2017.
He said the bank had a meeting with the Vice President, the economic management team as well as other cabinet members to discuss the challenges facing Nigeria.
He said that diversification was not a problem in the country, adding that the economy of Nigeria 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 for Nigeria to work with government to deepen investment.
“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 the 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 Mr President for the measures already taken to ensure economic growth, especially the devaluation of Naria and the removal of 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 deal with the current revenue situation.
“We are going to be supporting agricultural sector; we plan to invest 300 million dollars in agriculture through the ENABLE youth which is to develop the new generation commercial farmers.
“Our goal is to create 1000 youth entrepreneurs in agribusiness per state of the federation, making a total of 37,000.
Adesina said that the bank would provide 250 million dollars for the Northeast integrated infrastructure development programme to support the rehabillation of the Northeast.
He added that the focus would be on water, health, sanitation, artisanal skills, entrepreneurship and social amenities for the 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 for 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 added.
