African Development Bank's Unprecedented $4.4 Billion Funding in Nigeria Sets Record in Africa
The article highlights the African Development Bank's unprecedented investment of $4.4 billion in Nigeria, marking the largest funding allocation in Africa. This substantial financial commitment is set to significantly impact Nigeria's development initiatives and economic growth.
Record-Breaking AfDB Funding Empowers Nigeria's Development
In a recent meeting between the African Development Bank (AfDB) and Nigeria's Ministry of Finance, the Country Director of AfDB, Mr. Lamin Barrow, announced that the bank's funding for development projects in Nigeria stands at an impressive $4.4 billion, marking the highest allocation in Africa.
Mr. Barrow commended the federal government for its recent reforms, including the removal of fuel subsidies and the unification of foreign exchange policies. He emphasized that the Bank's portfolio in Nigeria is one of the largest among the Regional Member Countries (RMCs), encompassing 48 operations evenly distributed between public and private sectors. For more detailed insights into the portfolio's profile and quality, the presentations were recommended.
Mr. Barrow also expressed satisfaction with the increased submission rate of procurement plans, which rose from 72% to 82%. He lauded the Federal Executive Council's (FEC) approval of the Ekiti Knowledge Zone project.
Since the 2022 Country Portfolio Performance Review (CPPR) Workshop, certain metrics have shown improvement. Operations facing implementation challenges decreased from 36% in January 2023 to 32% in September 2023. This improvement is attributed to collaborative efforts from the Federal Ministry of Finance, Executing Agencies, and the Bank in minimizing startup and implementation delays.
Mr. Barrow acknowledged the remarkable development with the FEC's approval of the Ekiti Knowledge Zone project. He further noted that the percentage of startup delays reduced from 32% of flagged operations in June 2023 to 28% in October 2023. It is anticipated to decrease to 8% by the end of 2023 through timely and focused actions on specific projects.
However, Mr. Stanley George, Director of the International Economic Relations Department at the Federal Ministry of Finance, highlighted challenges hindering AfDB's portfolio performance. These include extended implementation timelines, low disbursement rates, and insufficient communication with various Ministries, Departments, and Agencies (MDAs). Efforts are underway to address these impediments and further enhance project execution in Nigeria.
