In a bid to promote sustainable economic growth in Africa, the African Development Bank (AfDB) has pledged to help revive the Nigerian economy. On Monday, the President of AfDB, Mr. Akinwunmi Adesina revealed the institution’s plan to give a $4.1 billion loan facility to Nigeria. The AfDB boss made this statement when he met with President Muhammadu Buhari at the State House, Abuja.
Mr. Adesina said “I’m here to support very strongly. We have said that we are going to support the Nigerian government with the budget support to be able to deal with some of the fiscal imbalances that they have. We are looking to consider an award of $1bn to help to deal with that particular deficit.”
He also enlisted the full package his institution has for Nigeria, which includes $1billion in budget support, $300 million to create jobs for 185,000 youths, $250 million towards infrastructure development in the North-East, $1 million grant to deal with challenges of Internally Displaced Persons, $300 million for infrastructure development around Abuja, and $200 million for the Transmission Company of Nigeria to improve its facilities, among others.
What is AfDB?
African Development Bank (AfDB) is a multilateral development financial institution that was established in 1964. It operates under the auspices of Africa Union with the overall objective of supporting African countries’ economic development and social progress. It provides loans to member states of African Union as well as technical assistance that will support developmental efforts.
Why AfDB’s support is significant
AfDB’s strive to revive the Nigerian economy is remarkable as it reveals the institution’s significance in the region. This effort underscores the consciousness of the institution in ensuring economic growth and sustainable development in Africa.
A major instance that comes to mind was the US Marshall plan after the Second World War. US gave over $12billion financial aid to Western European states that suffered the ruin of war. This financial aid was mainly to make these states recover from economic recession as well as rebuild their economies. While the political undertone that ushered the Marshall plan could not be overlooked, it was still able to bring back Western European states back on their feet and strengthen their economic might. The financial aid was very significant for the Western European states.
AfDB’s support for Nigeria at this crucial time of economic recession follows the same vein. The aid, among other measures, is expected to help revive Nigeria’s economy from its present woes.
In addition, the AfDB pledged to support the diversification plan of President Muhammadu Buhari and his economic team. In other words, the institution is ready to help Nigeria focus on other sectors like agriculture, solid minerals, among others. This will reduce Nigeria’s overdependence on oil and gas, which is currently the major contributor to the nation’s Gross Domestic Product. This shows the AfDB’s aim to provide a long-term solution to Nigeria’s economic problem.
There is the dominant belief that the African Union and its sister agencies are not fit to tackle Africa’s problem. However, AfDB’s help in reviving Nigeria’s drowning economy runs counter to this notion. Generally, AfDB has been making considerable efforts in achieving sustainable development in Africa. For instance, a few days ago, the institution pledged $1.4billion support for agricultural transformation and productivity in Senegal. On September 8, AfDB also approved $2million grant to Guinea Bissau and Cape Verde to combat the outbreak of Zika virus. All these activities indicate the relevance of this institution in the continent.
