By Sodeinde Temidayo David
In order to help Nigeria find an alternative financing to fight insecurity, the African Development Bank (AfDB) has proposed to design and implement security-indexed investment bonds.
AfDB President Akinwumi Adesina, speaking at the two-day ministerial retreat on ministerial performance review in Abuja on Monday, said these bonds would be offered in the capital market.
According to him, the investment tool would be issued in global debt markets and would be accessible to different countries, with the proceeds being used to improve the security architecture, rebuild damaged infrastructure in conflict-affected areas, and rebuild social infrastructure and protect areas with investments.
Mr. Adesina stressed that without security there can be no investment, growth or development in a country, explaining that an economic resurgence in Nigeria must be a more peaceful and secure Nigeria.
âToday more than ever, several African countries devote a significant part of their budget to security, shifting the resources necessary for development,
âWe must recognize the close links between security, investment, growth and development.
“This is why the African Development Bank is working on the development of security-indexed investment bonds to help African countries and regional economic communities to mobilize resources to meet these challenges,” noted Mr. Adesina. .
The AfDB President further underlined the importance of modernization and transformation of ports in Nigeria, adding that ports are not there to generate income as they are to facilitate business and exports and boost the industrial manufacturing, and the competitiveness of local businesses and exports,
“We shouldn’t decongest the ports in Nigeria, we should transform the ports,” he noted, explaining that this must start by removing administrative bottlenecks, most of which are unnecessary with multiple government agencies in it. ports, high transaction costs, or even simple illegal tax extortions, which do not fit into government coffers.
The AfDB President said Nigeria should view the FinTech industry as a major driver of the economy and invest heavily in digital infrastructure.
Mr Adesina further said that Nigeria should make its young people the engines of the new economy through investment banks for youth entrepreneurship.
He also recommended the establishment of special agro-industrial processing zones across the country and the reestablishment and enshrining in law of the electronic wallet system and the growth enhancement program, stating that such establishments would improve the economy. ‘access of farmers to agricultural inputs.