The African Development Bank (AfDB) has stated its willingness to assist Nigeria in designing and deploying “Security-Indexed Investment Bonds” to raise more funding to address the country’s security issues.
Bond sales let countries acquire money from the global capital markets to assist them in modernizing their security architecture, repairing damaged infrastructure in conflict-affected regions, and restoring social infrastructure while making strategic investments to defend areas.
NAN’s African Development Bank president, Dr. Akinwumi Adesina, made this revelation at the Mid-Term Ministerial Performance Review Retreat in Abuja on Monday. He said that without adequate security, there could be no investment, growth, or development.
According to the head of the AfDB, a more prosperous Nigeria must also be a more secure Nigeria.
“Today, more than ever, several African countries are spending a significant share of their budgets on security, displacing the resources needed for development. We must recognize the strong linkages between security, investment, growth, and development.
“That is why the African Development Bank is working on developing Security-Indexed Investment Bonds to help African countries and Regional Economic Communities to mobilize resources to tackle these challenges.”
Going further, Adesina emphasized the importance of the modernization and transformation of ports in Nigeria.
“Ports are not there for revenue generation. They are for facilitating business and exports and stimulating industrial manufacturing and competitiveness of local companies and exports. We should not be decongesting the ports in Nigeria; we should be transforming the ports.
“This must start with cleaning up administrative bottlenecks, most of which are unnecessary with multiple government agencies at the ports, high transaction costs or even plain extortions from illegal taxes, which do not go into the coffers of the government.”
He also noted that the trade, investment, and competitiveness through the Africa Continental Free Trade Area was a major opportunity for Nigeria, which would depend on its ports. It added that significant support should be directed towards boosting industrial manufacturing capacities.
Insecurity has been a major challenge for Nigeria’s economic development and growth in recent times.
Raising the needed funds to finance a sustainable fight against the rising insecurity is a welcome development.
The Nigerian government had recently solicited assistance from some foreign countries and some development organizations in funding and provision of weapons to help tackle the insecurity problems.