The African Development Bank (AfDB) has said it is ready to assist Nigeria in designing and implementing ‘Security-Indexed Investment Bonds’ to raise more resources to tackle its security challenges.
President of the AfDB, Akinwumi Adesina, said this on Monday at the Mid-Term Ministerial Performance Review Retreat in Abuja.
He said the bonds would raise funds on the global capital markets to support countries in upgrading their security architecture, rebuilding damaged infrastructure in conflict-affected areas, rebuilding social infrastructure, and protecting zones with strategic investments, NAN reported.
The AfDB president further stressed that without security, there could not be investment, growth or development, noting that an economically resurgent Nigeria “must be a more peaceful and secure Nigeria.”
According to him, “Today, more than ever, several African countries are spending a significant share of their budgets on security, displacing the resources needed for development. We must recognise the strong linkages between security, investment, growth, and development,” said Mr Adesina. “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.”
Furthermore, the AfDB boss stressed 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 noted. “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.”
He explained that the trade, investment, and competitiveness through the Africa Continental Free Trade Area was a major opportunity for Nigeria, which would depend on its ports.
“Nigeria should also move rapidly to the top of selected value chains, such as automobiles, computers and electronics, textile and garments, and food manufacturing, transport, and logistics,” said Mr Adesina