AfDB approves $155 million loan for Nigeria’s power sector

The Africa Development Bank (AfDB) says it has approved a loan of 155 million dollars for Economic and Power Sector Reform Programme (EPSERP) in Nigeria. A statement by Fatimah Alkali, Senior Communications Officer of AfDB in Abuja on Friday said that the loan became effective in October, 19, 2012.

Recent media reports had indicated that there might be a face-off between the Senate and the Federal Government on plans to secure a facility of 174 million dollars from AfDB.

The media reports also revealed that part of the security for the loan was the handing over the management of Transmission of Company of Nigeria (TCN) to AfDB.

To this end, the AfDB, in its statement, said that the appointment of the management TCN was a prerogative of the Nigerian authorities and not that of AfDB

It stated that the loan was aimed at improving power systems, business environment and sustaining growth through sound macroeconomic policies and budget priorities. AfDB said the amount was fully disbursed in two tranches on March 1, 2013 and December 21, 2015, respectively.

According to the statement, the programme was designed to benefit the entire population of Nigeria in terms of extended access to more reliable supply of electricity at reduced rate.

“The EPSERP will have a major positive impact on the private sector through the substantial reduction in the cost of doing business for all economic sectors, particularly in the formal and informal manufacturing and service activities which are seriously constrained by the power supply gaps.“

AfDB also said that the bank had also released one of its staff to support the government in its power sector reforms programme for 12 months on September 19, 2016

It said it was committed to assisting Nigeria to achieve the objectives of its reforms in the power sector in accordance with the priorities already approved by the authorities.

AfDB introduces new model to allow faster disbursement.

The African Development Bank (AfDB) has introduced a new Development and Business Delivery Model (DBDM) to improve performance, accountability and streamline processes for faster loan disbursement on the continent.

The bank announced this in the January edition of its newsletter issued by its Nigeria Country Office in Abuja on Tuesday.

The newsletter said the introduction of the DBDM would usher in significant structural and procedural changes in the bank.

It said that the Nigeria Country Office would now be known as the Nigeria Country Department (RDNG) with effect from Jan. 1.

The newsletter stated that Nigeria would be the only AfDB country office with departmental status.

It said that the Nigeria Country Department would be the largest single office of the AfDB overseeing a portfolio of 6.1 billion dollars and dealing with 36 states of the federation, including the Federal Capital Territory.

“The DBDM is designed to enable the bank to deliver on its development priorities, the high fives (5s) to light up and power Africa, feed Africa, industrialise Africa, integrate Africa and improve the quality of life for the people of Africa.“

The bank said the DBDM would also move the bank closer to its clients and improve its work efficiency.

 

Source: NAN

AfDB guarantees $12bn investment in electricity in next 5 years.

The 8th President of the African Development Bank (AfDB), Akinwumi Adesina, has explained that AfDB would invest $12bn over the next five years in support of accelerated electricity supply in Africa and would leverage between $45 to $50m from the private sector.

 

He disclosed this at the Africa Day in Marrakech, Morocco on the side-line of COP22, organized by African Union (AU) in collaboration with Nigeria and Economic Community of West African States (ECOWAS), with the theme, “Moving from Commitment to Action with the Intended Nationally Determined Contribution (INDC) and the Africa Renewable Energy Initiative (AREI).”

 

According to him, “The reason Africa export raw and unprocessed materials is due to lack of electricity which has pushed Africa down to the bottom of global value chains but Africans must power up itself to add value to what it produces, speeding up industrialization and moving to the top of global value chains.

 

This he said must start by unlocking the huge potentials of energy on the continent including Africa’s vast potentials in renewable energy as well as non- renewable energy saying there is a need for Africa to develop a balanced energy means that would allow it to industrialize.

 

He noted that lack of electricity drives down Africa’s growth and development saying that Africa had continued to export raw materials for decades that are subject to global community price shocks.

 

“The bank will work with the African Union and other partners to fast-track the Africa ‘we want’ which must be on Africa, where we will have universal access to electricity within 10 years.

 

He confirmed that AfDB is highly supportive of Africa’s renewable energy initiative that would unlock Africa’s renewable energy potential to deliver 10 Giga-watts of electricity by 2020 and 300 Giga-watts by 2030.

 

Adesina stressed that the bank is rapidly building up its institutional capacity to deliver the N-Power African Agenda for Africa adding that African Union approved the Africa Renewable energy initiative.

 

To drive the action, he noted that the bank appointed a new Vice president for Power, Energy, Climate and Green Growth, Amadou Hott, thereby making the bank the first multilateral development bank to attain the height.

 

He noted that grid, mini-grid and off-grid systems would play a major role in Africa’s industrialization process.

AfDB approves $1m to reduce malnutrition in Borno.

The African Development Bank Board has approved $1 million to support the fight against malnutrition in Borno State.

The bank announced this in a statement by the Senior Communications Officer, Nigeria Country Office, Fatimah Alkali, in Abuja.

It said that the grant was approved by the executive directors of the bank as emergency assistance to support the fight against malnutrition in the state.

The statement said AfDB’s intervention would strengthen the ongoing effort by the government and partners such as UNICEF, WFP and OCHA to support the northeastern region of the country.

Alkali said: “The Bank will focus on Borno State where the situation is dire, to rationalise funds and be more efficient.

“This will contribute to reducing malnutrition rate among the most vulnerable population mainly children under five years and women of childbearing age.

“If these children are left untreated, it is envisaged that an estimated 59,320 would die.

“This intervention will augment efforts at attaining the target to reach 80 per cent of the estimated SAM cases in the region by 2017.

“Nigeria is currently in economic recession which has stretched the government’s capacity to address vulnerability; over 2.5 million children under five years are severely malnourished across the country and are nine times more likely to die than their counterparts.”

The intervention is aligned with one of the operational priorities of the bank’s 10-year strategy from 2013 to 2022.

The operational priorities of the bank are governance and accountability, which are reiterated in two of the High-5s: Feed Africa and improve the quality of life for the people of Africa.

In June, the Minister of Health, Prof. Isaac Adewole, declared a nutrition emergency in Borno State.

The West and Central Africa Regional Food Security and Nutrition Working Group had called on the international community to respond to prevent the situation from deteriorating.

African Development Bank AfDB Approves $600m Loan For Nigeria

The African Development Bank (AfDB) has approved $600 million loan as the first tranche of a one-billion-dollar budget support to help finance Nigeria’s economic governance, diversification and competitiveness programme.

Fatima Abubakar, the spokesperson for the bank in Nigeria, said the executive directors of the bank approved the facility on Wednesday.

“The last tranche of 400 million dollars will be approved in 2017,” Abubakar said.

The operation is part of a two-year (2016-2017) fiscal programme support to enable Nigeria implement reforms to achieve efficiency in government business, combat corruption and promote diversification.

It will help the government to create fiscal space to facilitate  smooth implementation of its budget, support fiscal and structural reforms and improve social sector spending to protect the most vulnerable segments of the population.

“The facility will also assist the country’s efforts to quickly build a buffer of foreign exchange reserves, which will  contribute to easing pressure on the foreign exchange market and stabilising the naira,” she said.

Nigeria’s success in efforts to achieve macroeconomic stability and economic recovery will signal the end of the current recession.

An elongation of the recession has potential to severely affect the economies of neighbouring countries in West and Central Africa.

Abubakar quoted Akinwunmi Adesina, AfDB president, as saying:   “We must think through innovative solutions to support our regional member countries in crisis situations like this.”

“We must also provide them with the knowledge products they require to get back on track.”

She said given Nigeria’s demonstrated commitment to significantly scale up infrastructure investments (30 per cent of the 2016 budget), the resources would contribute to creating the fiscal space for investments in power, housing and transport.

“These are key sectors for stimulating the strong economic growth required to exit the recession,” Abubakar said.

Nigeria’s economy has been hit by a sharp decline in oil prices. Oil provides the bulk of government revenues and exports although agriculture and services contribute most to GDP.

Over 90 per cent of Nigeria’s exports and at least 70 per cent of government revenues come from the oil sector, which is projected to have shrunk by 1.6 per cent within the year.

The economy slipped into a recession in the second half of the year because of foreign currency shortages, sharp reduction in power generation, vandalism of oil installations, lower oil production and weak investor confidence.

At the end of  December 2015, AfDB’s portfolio comprised 46 operations estimated at $3.01 billion.

The portfolio consists of 22 public sector operations valued at 1.51 billion dollars or 31 per cent of the entire portfolio and 24 private sector projects, estimated at 2.21 billion dollars or 69 per cent.

At a recent meeting with President Munhammadu Buhari and economic stakeholders, Adesina pledged to provide Nigeria with one billion dollars loan to help it reinvigorate the economy.

AfDB Offers $1Billion Lifeline To FG

The African Development Bank (AfDB) will support Nigeria with a sum of $1 billion to address the country’s N2.2 trillion deficit in the 2016 budget.

The gesture comes amid re-assurance by President Muhammadu Buhari that Nigeria has the wherewithal to surmount its current economic setback.

AfDB President, Akinwunmi Adesina, who was at the State House in Abuja, yesterday, also unfolded other packages the financial institution has for the country.

They include $300 million to create jobs for 185,000 youths; $250 million for North East infrastructure development; $1 million grant, to deal with challenges of Internally Displaced Persons; $300 million for infrastructure development around Abuja; and $200 million for the Transmission Company of Nigeria (TCN).Receiving Adesina, Buhari said: “God has given us people and resources. It will take hard work on our part, but we will make it. We will get out of our problems.”

We are determined to produce what we eat, and stop importation. We will also chase those who stole, and get them to refund.”Adesina appreciated the country’s support when he contested the AfDB presidency, making him the first Nigerian to occupy the position since the bank was established in 1964.

The AfDB boss described recent economic policies in the country as “bold, tough, uncomfortable, but right,” adding that Nigeria would reap the dividends in due course.

Read More:

http://guardian.ng/news/afdb-offers-1billion-lifeline-to-federal-government/

Housing finance: AfDB Injects $8.2m Into Shelter Afrique

Shelter Afrique has received $8.2 million injection of equity from the African Development Bank (AfDB). Shelter Afrique is a pan-African finance institution which exclusively supports the development  of housing and real estate sector in the continent. In a statement, AfDB said the injection is meant to strengthen its balance sheet and help achieve its objective of providing quality affordable housing in Africa. It further highlighted the confidence the bank has in the future of the continent and the implications for housing development in the continent.

“Africa’s economic landscape remains positive with promising scope for growth; Gross Domestic Product remains robust supported by multiple factors. The continent’s growing population, a growing middle class and the fastest urbanisation rate in the world are some of the factors driving increased demand for affordable houses and housing finance,” AfDB noted. Managing Director of Shelter Afrique, Mr. James Mugerwa, noted that the equity increase is a reflection of the confidence reposed by AfDB in his firm.

“The African Development Bank has sent strong signals about the seriousness of housing on the continent, and by extension, the seriousness of what we do here at Shelter Afrique. It is a welcome development but we see it as engaging as well. This equity increase means the AfDB wants to see more, they want to see impact and scale and that is what we will be aiming for this year; impact,” he said.

AfDB stated that the investment is well aligned to its ten year strategy for the period 2013-2022, as well as one of the bank’s high strategic priorities of “improving the lives of people in Africa”. With the increase in equity, AfDB – a Class B shareholder – has become the largest shareholder in the organisation, making the housing financier an unofficial subsidiary of the bank. Shelter Afrique is owned by 44 African Sovereign shareholders categorized as Class A shareholders. The Class B shareholders are the African Development Bank and the Africa RE organisation.

Source – vanguardngr.com

AfDB presidency: President Buhari’s Phone Calls To Global Leaders Shaped My Election, Says Adesina

THE newly elected President of the Africa Development Bank (AfDB), Dr. Akinwunmi Adesina, yesterday spoke of President Muhammadu Buhari’s role in his election.

Adesina said Buhari made vital phone calls to global leaders in respect of the position that resulted in his emergence as the AfDB President, noting that the outcome of the race would have been different were it not for him.

The ex-minister of Agriculture and Rural Development under former President Goodluck Jonathan administration spoke at the Oke-Mosan Governor’s Office, Abeokuta, the Ogun State capital, when he visited Governor Ibikunle Amosun.

He added that other notable Nigerians, including former Presidents Olusegun Obasanjo, Jonathan, Gen. Abdulsalami Abubakar and others stood behind him.

Adesina noted that the dream and vision of African countries are one and pledged to use his office as president of the continental bank “to develop Africa, fight poverty, develop infrastructure and revive rural economies”.

He said: “I want to use this opportunity to congratulate President Buhari on his election and his inauguration. I want to thank him tremendously for the support that he gave me on the run for the presidency of the African Development Bank.

“Without that support and without him personally engaged in making calls to critical global leaders in the last days of the election, I don’t think we might have seen the result we saw today.

“I want to really thank the President tremendously for his support and for his commitment and to helping make sure we got that victory.

“Obviously, I couldn’t have also been here, except the former President, Goodluck Jonathan, nominated me. I feel tremendously humbled with that nomination and supported me tremendously by putting a lot of weight behind me.

“I want to thank particularly, former Vice President Namadi Sambo who also went with me to different parts of Africa in mobilising support. Also former Vice President Atiku Abubakar, who also was in the frontline of actually pushing and helping us.

“So tremendous amount of goodwill that we had. The National Assembly was great, the press was generous, and all Nigerians, it is not about me, it is about our country and we are a great country.

He added: “I want to assure you that I as the president of the bank, by the grace of God, poverty would not be the comparative advantage of Africa and we would work very hard to develop programmes that would end poverty on this continent, that would lead people out of it and create opportunities for shared prosperity all across our continent.

“Obviously, I think critical issues of infrastructure would be important, energy for all would be important, electricity would be important, very critical to build private sector and to create wealth all across our continent.

“We want to ensure that we are able to create jobs for hundreds of millions of our people, instead of people going across this Sahara Desert or Mediterranean to go to Europe, we want to create job on this continent of Africa and we can do that.

“Also, I believe we must revive our rural economies and lift hundreds of our rural people that depend on agriculture out of poverty. So, getting agriculture to work as a business is going to be a big one that we are going to do for inclusive growth and also into regional integration.”

Dr. Adesina said his dream and vision for Africa is one, adding: “An Africa that is growing well, has a lot of shared prosperity and Africa where you have a lot of peace, stability and security, and one which is regionally integrated within ourselves, but also globally competitive in what we do.”

AfDB: Amosun Congratulates Adesina

Governor Ibikunle Amosun of Ogun state, Southwest, Nigeria has congratulated former Minister of Agriculture, Akinwunmi Adesina on his election as the 8th President of the African Development Bank (AfDB).

The governor, who was sworn in on Friday as the governor of Ogun for the second term, described the success as not only a personal success to Adesina, but also to Nigeria as a country.

He also stated that the emergence of Adesina as the head of the bank is another of many feats of indigenes of Ogun state, where he hails from.

The governor expressed confidence in the new President of the AfDB, as a seasoned agricultural economist, to bring his wealth of experience to bear in his new position by using agriculture as a pivot to provide food security and create jobs for the army of unemployed youths on the continent.

“The appointment is well deserved, having served meritoriously in his capacity as Minister of Agriculture in Nigeria. He has made us proud in Ogun state as we have scored yet another first, being the first Nigerian to be so appointed.

“I have no doubt in my mind that he would bring his experience to bear in his new assignment. I wished him success in his new endeavor,” Amosun said.

Akinwumi Adesina Elected As AfDB President

After a long debate and selection process  AFDB today announced Akinwumi Adesina as her new President. This was published on their official website just minutes ago:

“Akinwumi Adesina was elected as the 8th President of the African Development Bank on Thursday, May 28.

A Nigerian citizen, Adesina is currently serving as Nigeria’s Minister of Agriculture and Rural Development.

He succeeds Donald Kaberuka, whose second term as President of the Bank ends in August.

His name was announced by Albert Toikeusse Mabri, Minister of Planning and Development for Côte d’Ivoire, and current Chairman of the Board of Governors of the African Development Bank.

The election was conducted by the Board within the Annual Meetings of the African Development Bank Group, held in Abidjan.

Adesina, 55, will assume office on 1 September 2015?.

AfDB Invests N14.78b In Member Countries’ Agric Sector

The African Development Bank (AfDB) said it has invested N14.78 billion (N2.91 trillion) in the agriculture sector of its Regional Member Countries (RMC) in 46 years to grow their economy.

 

Mr Chiji Ojukwu, the Director of Agriculture and Agro-Industry Department of the bank, stated this in a statement published on the bank’s official website.

 

In the statement, retrieved by the News Agency of Nigeria (NAN) on Sunday in Lagos, the director said that between 1968 and 2014, the bank group approved 876 operations.

 

These operations had commitments valued at approximately 14.78 billion dollars that provide support to agriculture and rural development.

 

“Between 2010 and 2014, about 230,000 kilometres of feeder roads were constructed and/or rehabilitated and 563,000 people benefited from improved access to transport.

 

“About 1.5 million people had access to improved technology and some 600 production and marketing facilities were constructed.

 

“In terms of natural resource management, more than 0.8 million hectares of land have been improved through replantation/reforestation, benefiting about 19 million people, 45 per cent of whom were women,’’ Ojukwu said.

 

According to him, one of the stand-out projects in agricultural infrastructure includes the Uganda Community Agricultural Infrastructure Improvement Programme that won the U.S. Treasury Honours for Development Impact in 2013.

 

“The Bank has also supported the resilience building projects including its Drought Resilience and Livelihoods Support Programmes in the Horn of Africa and the Sahel.

 

“Going forward, there is need for multi-sector investments in agriculture using an integrated value chain approach for the bank to contribute to unlock the potential of agriculture for sustained and inclusive growth in Africa.

 

“This implies greater attention to both horizontal and vertical integration in all relevant value chains.

 

“This includes addressing constraints and opportunities faced by farmers and producers; strengthening the delivery of business and financial services and enabling the flow of information.

 

“Other opportunities are facilitating improved markets and agro-processing infrastructures as well as improving farmers’ skills and linkages to markets,’’ Ojukwu said.

 

He noted that the bank’s new agricultural strategy under processing (2015-2019) would continue to focus on investments in agricultural infrastructure, resilience building and natural resources management.

 

This would be in addition to a new pillar focusing on agribusiness and innovation.

 

On the bank’s level of support to RMCs to meet the goal of the 2010-2014 Agriculture Sector Strategy, Ojukwu said that the bank group operations met or exceeded 75 per cent of its targets.

 

“This is for activities pertaining to its promoting agriculture infrastructure development and increasing resilience and natural resource management,’’ he said.(NAN)

Sambo In Algeria, Drums Support For Adesina’s AFDB Presidency

Vice-President Namadi Sambo on Sunday in Algiers, met with the Algerian Prime Minister Abdelmalek Sellal where they discussed bilateral issues relating to the development and co-operation of their two countries in various fields.

The information was contained in a statement issued in Abuja on Sunday by the vice-president’s Senior Special Assistant on Media and Publicity, Malam Umar Sani.

It stated that the vice-president, who arrived Algiers on Saturday, was received by the Foreign Affairs Minister of Algeria Ramtare Lamamra at the Houari Bounediene International Airport Algiers.

According to the statement, Sambo used the occasion to solicit for the support of Algeria towards the candidature of Dr. Akinwumi Adeshina for the Presidency of the African Development Bank (AfDB).

The statement maintained that Sambo, who was in Algiers as a special envoy of President Goodluck Jonathan, presented a letter from President Jonathan to Abdelazeez Bouteflika the President of Algeria

The meeting, according to the statement, had in attendance the Foreign Affairs Minister of Nigeria, Amb. Aminu Wali, the Minister of Agriculture Dr. Akinwumi Adeshina and the Nigeria’s Ambassador to Algeria, HarunaGinsau.

Also the Algerian Ministers of Foreign Affairs, Agriculture and Rural Development RamtaneLamama and Abdelouahab Nouri respectively, were part of the exchange of views on a number of regional and international issues of mutual interest to both countries.

“Highlights of the event was a presentation to the Prime Minister by Dr. Akinwumi Adeshina in flawless and impeccable French outlining his plans for the bank if elected as its President,” it further stated.