AfDB Approves $300m Loan For Nigeria’s Transport Projects

The African Development Bank Group (AfDB) has approved a loan of $300 million to facilitate the development of Nigeria’s transportation system.

A statement by the bank, which was obtained last Sunday, specifically said the loan was meant to finance the transport sector and economic reform programmes as well as Nigeria’s strategic projects for the period of 2013-2017.

The loan, it added was aimed to support the implementation of the Federal Government’s reform in the transport sector and public expenditure management.

It listed the reform measures to include the establishment of a Federal Road Authority, National Road Maintenance Fund, Road-tolling Policy, and Axel Load Control Policy.

“In the areas of public financial management reform, the programme involves the adoption of International Public Sector Accounting Standards, Internal Audit Modernisation Plan, Treasuring Single Account, Government Integrated Public Financial Management, and Transparency and Compliance in Procurement and Audit Practices,” the bank said.

Besides, it stated that the programme would also create fiscal space for increased investment in road infrastructure development.

“It is an integral part of a broader set of interventions of the bank designed to support Nigeria’s transformation agenda with emphasis on economic governance and infrastructure development,” it stated.

AfDB said the country’s strategy paper outlined the bank’s engagement and assistance to the Federal Government.

This, it said, would focus on two strategic pillars, which were the development of a sound policy environment, and investing in critical infrastructure to promote the development of the real sector.

“The strategy is aligned with the government’s long term development agenda,” it added.