· Says $3 trillion required to bridge infrastructure deficit
CHIGOZIE AMADI
Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, yesterday, told the Bank of Industry (BoI) and other Development Finance Institutions (DFIs) in the country to provide adequate funding for emerging sectors of the economy.
Uzoka-Anite gave the charge at the opening session of the fourth Annual General Assembly of the Association of Nigerian Development Finance Institutions (ANDFI), with the theme, “Financing Emerging Sectors for Growth- Role of DFIs.”
The minister said, “It may interest you to note that emerging sectors, such as renewable energy, biotechnology, information technology, sustainable agriculture, and culture sector, represent the future of our global economy.
“These sectors are not only poised to generate sufficient economic value, but also address some of the most pressing challenges of our time, including climate change, infrastructure, food security, and health, which the present government of President Bola Tinubu is confronting.
“We are aware that these sectors often face unique challenges that can hinder their growth. These include high initial investment costs, long development timelines, and the inherent risks associated with pioneering new technologies and business models.”
Uzoka-Anite said the initial challenges, passive risks, and uncertain returns were why the traditional financial institutions were often reluctant to invest in the emerging sectors.
Citing data from the World Bank, the minister, who was represented by Chairman, BoI Shareholders Committee, Mr. Mohammed Bala, said the country’s infrastructure deficits, which amounted to nearly 30 per cent of the Gross Domestic Product (GDP), fell short of the international benchmark of 70 per cent set by the World Bank.
She said the World Bank had projected that Nigeria will need to invest $3 trillion to reduce the infrastructure deficit.
The minister stated that the funding intervention was attainable if DFIs had confidence in the economy enough to invest the necessary funds.
Uzoka-Anite said, “I am aware that we have had several development institutions in Nigeria, which are all seated here. These DFIs are uniquely positioned to address challenges and catalyse the growth of emerging sectors, with the mandate to promote economic development and social progress.
“It is important to acknowledge that over the years, you have played a crucial role in providing the necessary financial support and fostering an enabling environment for industries to grow, and equally providing financial services to sectors and projects that have contributed to the growth of the economy and promoted real sector activities in Nigeria.
“I, therefore, urge all stakeholders, government, private sector, and development partners, at the sub-national level, most especially, to collaborate closely to harness the opportunities presented by emerging sectors, as together, we can build a more prosperous, innovative, and resilient economy that will be the envy of other countries.
“This is because a well-developed financial sector is crucial for attaining sustainable and balanced growth, as well as ease of doing business.”
ANDFI Chairman/Managing Director of BoI, Dr. Olasupo Olusi, said DFIs played a significant role in ensuring sustainable socio-economic development globally.
Olusi urged members of ANDFI to work together by combining their expertise, resources, and network to unlock transformative projects.
He said the Tinubu government had, through the Renewed Hope agenda, set the blueprint for driving the country towards a trillion-dollar economy.
Olusi said, “The cooperation between the federal government and sub- national governments is critical to this objective, with the collaboration with the private sector.
“Given our mandate as DFIs, our role cannot be over-emphasised.”
He said the recent globalisation programme of the federal government and the associated “fiscal stimulus plan” attested to the fact that DFIs in the country “must help to engineer the transformation we hope to see in our country in the near term”.
