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Nigeria should incentivise its way out of recession – Akinwumi Adesina
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- Adesina reaffirmed the AfDB’s support in assisting Nigeria to emerge out of its current difficulties.
President of the African Development Bank, Akinwumi Adesina, has urged Nigerian policymakers to adopt the right incentives to boost foreign investment and growth for the country to move out of economic recession. Adesina disclosed this after meeting with President Muhammadu Buhari and his Economic Management Team at the Presidential Villa, Abuja, on Monday.
The AfDB president said Nigeria needs to incentivise its non-oil economy so that foreign direct investment can flow to critical sectors such as agriculture and agro-industrial sectors, solid minerals, manufacturing, and other small and medium enterprises.
"With the right incentives, the country will come out of the recession, structurally better balanced," Adesina said. “The revenue base will be more diversified. The Government will get more resources from better performing manufacturing and industrial sectors and SMEs. And, most importantly, unemployment will decline substantially.
Adesina, who is Nigeria’s former Minister for Agriculture and Rural Development, reaffirmed the AfDB’s support in assisting Nigeria to emerge out of its current difficulties. He said the Abidjan-based multilateral lender is finalizing a $1 billion support package to help Nigeria fund its budget deficit.
Other financing packages lined up for Nigeria include:
(1) $300 million financing to support youth employment in agribusiness, through the ENABLE Youth programme. The programme aims to create 1,000 youth entrepreneurs in agribusiness in each of the 36 states, with an expected additional 185,000 jobs created.
(2) $250 million financing for the North East Integrated Infrastructure Development Programme to support the rehabilitation of the Boko Haram-ravaged region.
(3) $200 million financing for the Agricultural Transformation Agenda Support Programme, which builds on the $150-million first phase, to support infrastructure, production, and agro-industrial zones.
(4) $300 million financing for the Abuja Infrastructure Project to provide integrated infrastructure (water, sanitation, roads, and electricity) for four satellite towns.
Adesina said AfDB’s portfolio in Nigeria is projected to increase from the current $4.6 billion to about $10 billion by 2019. The private sector is expected to receive $6.9 billion, while the public sector will get $2.1 billion, excluding the budget support of $1 billion planned for 2016.
"What is needed is not only to spend your way out of the recession, but to also incentivise your way out of the recession," he said.
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