$1.44 Billion Investment Approved by the African Development Bank to Facilitate the Construction of Nigeria’s Mega Projects

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The African Development Bank has approved a $1.44 billion investment to facilitate the construction of Nigeria’s mega projects. The funding is a relief to redress the infrastructure deficit currently strangling the West African country. This was disclosed at the Nasarawa Investment Summit 2024 by AfDB’s Nigeria Country Department director general, Lamin Barrow. The director general explained that this deficit restricts the country’s efforts to diversify its non-oil production. Furthermore, it is impeding the country to achieve international competitiveness for exports.“To address this problem, the African Development Bank is supporting the federal and state governments to improve the national and state’ infrastructure. As of April 2024, 31% of the Bank’s active portfolio, valued at US$1.44bn, supports infrastructure development in Nigeria,” Barrow commented in a speech on behalf of the group’s president, Dr. Akinwumi Adesina.

The Significance of the African Development Bank (AfDB) Facilitating the Construction of Nigeria’s Mega Projects

The approval of the African Development Bank (AfDB) to inject $1.44 billion into Nigeria’s mega projects construction is of great significance. The country aims to channel this investment to support the development of energy, transport, water and sanitation infrastructure in Nigeria. It will also be essential in completing some of Nigeria’s mega projects, such as the Lagos-Calabar coastal highway, the 1000-km Sokoto-Badagry highway, and other significant projects in the country.AfDB

The investment will facilitate the completion of these projects, which will, in turn, help the country’s citizens. The transport sector is expected to benefit immensely from these, as Nigeria’s federal government is focused on completing road projects. Recently, the federal government inaugurated the construction of a section of the Lagos-Calabar coastal highway, which was a remarkable endeavour. The country also seeks to turn its efforts to building the energy sector to ensure the accessibility of electrical power to its citizens. 

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Nigeria’s Federal Government Green lights Commencement of the 1,000-km Sokoto-Badagry Coastal Highway

The State of Affairs Regarding African Development Bank’s Investment in the Country

The aim of the African Development Bank investing in Nigeria’s construction of its mega projects is to harness its potential. Lamin Barrow noted that in order to achieve an industrial renaissance, Nasarawa State and Nigeria, in general, must accelerate domestic resource mobilisation. The country must also boost agriculture sector productivity, develop value chains and supportive infrastructure and enhance de-risk investments. It also needs to prioritise natural resource value addition and beneficiation, strengthen institutional capacity and bridge the skills mismatch to enhance youth employability. The investment will ensure that Nigeria’s Federal Government meets some of the objectives outlined by the African Development Bank.

Progress on Some of the Mega Projects Currently Ongoing in the Country

Construction of Nigeria’s mega projects seems to be going as scheduled, with others still in the planning phase. Others, such as the Sokoto-Badagry highway, a 1000-km road coverage endeavour across Nigeria, have commenced. Others, such as the Port Harcourt-Maiduguri railway, are still progressing steadily and receive accolades from the residents. However, some of these projects face challenges, such as the controversies around the $2 billion Lagos-Calabar Coastal Highway. Furthermore, outcries from residents residing in Landmark Beach prohibit the expected demolitions in the region. It is anticipated if demolitions happen in a bid to pave the way for the Lagos-Calabar coastal highway, property worth $100 million in value will be lost. Other ambitious ones such as the Eko Atlantic city are also expected to take shape soon enough. 

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Nigeria’s Mega Project: $2 Billion Lagos-Calabar Coastal Highway Project Takes Shape as Expected Completion Time is Announced

$3 Billion Port Harcourt-Maiduguri Rail Link Project Recommences in Aba, Eastern Nigeria.