The African Development Bank (AfDB) has urged the Nasarawa government to task the private sector for infrastructure development and service delivery.

The AfDB’s president, Akinwumi Adesina, said this at the Nasarawa Investment Summit in Lafia, with the theme ‘The Industrial Renaissance’.

“The 2023 Philips Consulting State Performance Index (PSPI) shows that Nasarawa’s infrastructure, including public transport, water and sanitation, and other physical infrastructure, are all below the national average.

“To change this narrative, Nasarawa should accelerate efforts to mobilise the private sector investment for infrastructure development and service delivery. This will also ease fiscal pressures on the state,” he said.

Mr Adesina reiterated the bank’s commitment to supporting the federal and state governments in improving their infrastructure. 

As of April, 31 percent of the bank’s active portfolio, valued at $1.44 billion, supported infrastructure development (energy and power, transport, water, and sanitation).

He said, “In Nasarawa state, the bank financed the construction of the Keffi and Akwanga water supply scheme. Comprising intake works, pumping stations, a 62,850 m3/d treatment plant, 19.9km transmission and 42km distribution pipes, service reservoirs, drainage and buildings. We look forward to doing more in the state’s infrastructure space, supporting PPPs and export-oriented private sector.”

According to Adesina, a vibrant and competitive private sector can accelerate the economy’s diversification and boost exports.

However, he said implicit taxation of the private sector was a major challenge in Nigeria as many private sector firms provided their own infrastructure.

“It is, therefore, not surprising that foreign direct investment (FDI) inflows have declined from 8.8 billion dollars in 2011 to about 469 million dollars in 2022, the lowest in a decade.

“Strengthening partnerships between the state government and private sector firms, through public-private partnerships (PPPs), and other investment incentives are necessary. This is to position Nasarawa as a top investment destination in Nigeria.

“However, the 2023 State Performance Index (PSPI) reported that insecurity in Nasarawa is a bigger challenge compared to the national average and is likely to scare away private investors,” he said.

Mr Adesina urged the state to collaborate with relevant organisations to address insecurity and mitigate adverse environmental and social impacts around the state mining sites. 

On deepening the financial sector and de-risking investments, he said the state required improved access to credit for private sector investors and small and medium enterprises (SMEs).

(NAN)