NIGERIA BENEFITS AS AFDB SETS $1.3 TRILLION ANNUALLY TARGET FOR AFRICA ’s DEVELOPMENT

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Olori Uwem

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Mar 18, 2024
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NIGERIA BENEFITS AS AFDB SETS $1.3 TRILLION ANNUALLY TARGET FOR AFRICA ’s DEVELOPMENT

The African Development Bank (AfDB) has stated that African countries need $1.3 trillion annually to achieve sustainable development by 2030. This announcement was made on the AfDB website on Friday, alongside the bank’s announcement of a $1.44 billion investment in Nigeria. This investment, disclosed during the Investment Summit 2024 held on May 15-16 in Lafia, is aimed at developing Nigeria's energy and power, transport, water, and sanitation infrastructure.

The AfDB emphasized the immense economic potential of Africa, which requires sustained financial investments. The bank called for more inclusive financial assistance from relevant stakeholders to help Africa realize this potential. The statement highlighted the need for a responsive, inclusive, and accountable international financial system to support the acceleration of global development.

Africa’s Gross Domestic Product (GDP) is estimated at $2.5 trillion, but this figure does not account for the continent's significant natural resource capital, valued at $6.2 trillion. Africa possesses more than half of the world’s uncultivated arable land, 20% of the world’s tropical rainforests, fertile savannahs, woodlands, peatlands, and mangroves. Additionally, Africa has substantial 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 significant deposits of lithium.

The AfDB noted that these natural assets are grossly undervalued or ignored when calculating Africa's GDP. The bank was established 60 years ago to support the continent's transformation financially and is currently headed by Dr. Akinwumi Adesina, a Nigerian. Nigeria has been a significant beneficiary of the bank’s financial services, with funding for development projects worth around $4.4 billion. Stakeholders in the African Development Bank Group will hold an Annual Meeting in Nairobi to discuss the bank’s successes as a catalyst for Africa’s transformation.