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Business News of Tuesday, 12 October 2021

Source: nairametrics.com

AfDB to assist Nigeria with bonds to help raise funds to fight insecurity

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The African Development Bank (AfDB) has expressed its readiness to assist Nigeria in the design and implementation of “Security-Indexed Investment Bonds” to raise more funds to tackle its security challenges.

The sale of these bonds will help raise funds from the global capital markets to support countries to upgrade their security architecture, rebuild damaged infrastructure in conflict-affected areas, rebuild social infrastructure and protect areas with strategic investments.

This disclosure was made by the President of the AfDB, Dr Akinwumi Adesina, at the Mid-Term Ministerial Performance Review Retreat in Abuja on Monday, where he pointed out that there could not be investment, growth or development if there was no adequate security, according to NAN.

What the African Development Bank President is saying

The AfDB boss said that an economically resurgent Nigeria must be a more peaceful and secure Nigeria.

Adesina said, “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.

“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.”

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

He said, “Ports are not there for revenue generation. They are for facilitating business and exports and stimulating industrial manufacturing, and the competitiveness of local businesses and exports. 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 also noted 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 adding that significant support should be directed towards boosting industrial manufacturing capacities.

Bottomline

Insecurity has been a major challenge for Nigeria’s economic development and growth in recent times.

Raising the needed funds to be able to finance a sustainable fight against the rising insecurity is a welcome development.

The Nigerian government had recently solicited assistance from some foreign countries and some development organizations in the area of funding and provision of weapons, to help tackle the insecurity problems.