Business
AfDB Mortgages N25bn To Develop Nigeria’s Economy
Resident Representative of Africa Development Bank (AfDB), Mr Ousmane Dore, has said that the bank has mortgaged N25 billion (155 million dollars) into the energy sector to develop Nigeria’s economy.
Dore told newsmen yesterday in Abuja that the N25 billion loan, which was signed in March, had been approved by the bank since 2009.
He said that the bank had some ongoing projects and had to lend to commercial banks for development purposes.
He said that the bank also had two sovereignty guarantee loans with a total of N105.89 billion (700 million dollars), aimed at developing the small and medium enterprises (SME) and create job opportunities in the country.
He said that the beneficiaries of the loan were Bank of Industry and Nigerian Export-Import Bank (NEXIM).
“The objective of the project is to create employment and to boost non-oil sector.
“Nigeria has grown well but this growth has not translated into real employment,” Dore said.
Dore said that the bank was undertaking two studies – the domestic resource mobilisation and the flat shape study report.
He said that the domestic resource mobilisation had not yet taken off, while the other was almost completed.
The resident representative said that the domestic resource mobilisation study would be for the improvement of tax administration, restructuring and simplifying the tax law in the country.
He added that it would be used to generate revenue to shield the economy from floatation in oil price.
Dore, however, noted that the flat shape study report would help to identify gaps in infrastructure development.
He said that the study would cover the infrastructure sector such as power, energy, railway and others, adding that the bank and other partners were making efforts to help the country to achieve its goal of developing infrastructure.