Nigeria set to benefit from AfDB’s $1.3trn funding

Alex Omenye
Alex Omenye

The African Development Bank has highlighted that African countries require $1.3 trillion annually to achieve sustainable development by 2030.

This announcement was detailed in a statement published on the AfDB website on Friday.

This comes alongside AfDB’s recent announcement of a $1.44 billion investment in Nigeria. Disclosed at the Investment Summit 2024 held in Lafia on May 15-16, the investment aims to enhance Nigeria’s energy and power, transport, water, and sanitation infrastructure.

AfDB emphasized Africa’s immense economic potential, which necessitates sustained financial investments from relevant institutions.

The bank called for more inclusive financial support from stakeholders to help Africa reach its economic potential.

The statement reads in part, “Africa needs $1.3 trillion annually to meet its sustainable development needs by the end of this decade in 2030.

For this to happen, Dr. Adesina argues that Africa needs a more responsive, inclusive, and accountable international financial system to support the acceleration of global development.”

AfDB noted that Africa’s Gross Domestic Product is estimated at $2.5 trillion. However, data from some financial institutions in 2023 did not account for the continent’s significant natural resource capital, estimated at $6.2 trillion.

Additionally, Africa holds over half of the world’s uncultivated arable land, 20% of the world’s tropical rainforests, fertile savannahs, woodlands, peatlands, and mangroves.

The bank highlighted Africa’s vast mineral wealth, including 80% of the world’s platinum deposits, 77% of cobalt, 51% of manganese, 46% of diamonds, 40% of nickel, 39% of chromium, and substantial lithium deposits for manufacturing batteries and electric vehicles. The AfDB lamented that these natural assets are grossly undervalued and often ignored in Africa’s GDP calculations.

Established 60 years ago, the AfDB plays a crucial role in supporting Africa’s financial transformation. Currently led by Dr. Akinwumi Adesina, a Nigerian, the bank has been a significant financial ally to Nigeria, with development project funding in the country amounting to approximately $4.4 billion.

Stakeholders in the African Development Bank Group are set to convene in Nairobi for the Annual Meeting to discuss the bank’s impact and successes as a catalyst for Africa’s transformation.

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