TheCable

The African Development Bank (AfDB) says it is ready to assist Nigeria in the design and implementation of security-indexed investment bonds to raise more resources to tackle its security challenges.

Akinwumi Adesina, AfDB president, said this on Monday in Abuja at the opening of a two-day mid-term ministerial performance review retreat.

He said the bonds would raise funds on the global capital markets to support countries to upgrade their security architecture, rebuild damaged infrastructure in conflict-affected areas, rebuild social infrastructure and protect zones with strategic investments.

According to him, without security, there cannot be investment, growth or development.

He explained that an economically resurgent Nigeria “must be a more peaceful and secure Nigeria.”

“Today, more than ever, several African countries are spending a significant share of their budgets on security, displacing the resources needed for development,” Adesina said.

“We must recognise the strong linkages between security, investment, growth, and development.

“That is why the African Development Bank is working on developing security-indexed investment bonds to help African countries and regional economic communities to mobilise resources to tackle these challenges.”

Adesina further emphasised the importance of the modernisation and transformation of ports in Nigeria.

“Ports are not there for revenue generation. They are for facilitating business and exports and stimulating industrial manufacturing, and competitiveness of local businesses and exports,” he added..

“We should not be decongesting the ports in Nigeria; we should be transforming the ports.

“This must start with cleaning up administrative bottlenecks, most of which are unnecessary with multiple government agencies at the ports, high transaction costs or even plain extortions from illegal taxes, which do not go into the coffers of the government.”

The AfDB president said Nigeria should take the fintech industry as a major driver of the economy and invest heavily in digital infrastructure.

Adesina said that Nigeria should make its youth the drivers of the new economy through youth entrepreneurship investment banks.

He also recommended the establishment of special agro-industrial processing zones across the country and the reinstatement and enshrinement into law of the e-wallet system and growth enhancement scheme.

He said such establishments would boost farmers access to productivity and enhance farm inputs.