AfDB Approves $300mn Loan To Nigeria To Finance Transport Sector

In line with its commitment to supporting countries in their development efforts, the Board of Directors of the African Development Bank Group Wednesday approved in Abidjan, Côte d’Ivoire, a loan of US $300 million to finance the Nigeria’s transport sector and Economic Governance Reform Programme and the Nigeria Country Strategy Paper (CSP) for the period 2013-2017.

The bank in a statement made available to LEADERSHIP explained that the? loan aims to support the Nigerian government to accelerate reform implementation in the areas of transport sector governance, and public expenditure management. Reform measures include the establishment of a Federal Road Authority, National Road Maintenance Fund, Road-Tolling Policy, and Axel Load Control Policy.

“In the areas of public financial management reform, the programme involves the adoption of International Public Sector Accounting Standards (IPSAS), Internal Audit Modernisation Plan, Treasuring Single Account (TSA), Government Integrated Public Financial Management (GIFMIS), and Transparency and Compliance in Procurement and Audit Practices,” AfDB stated.

The bank further said, “The programme will also create fiscal space for increased investment in road infrastructure development. It is an integral part of a broader set of interventions of the bank designed to support Nigeria’s Transformation Agenda with emphasis on economic governance and infrastructure development” and added “the Country Strategy Paper outlines the Bank’s engagement and assistance to the Federal Republic of Nigeria. It will focus on two strategic pillars, namely; supporting the development of a sound policy environment, and investing in critical infrastructure to promote the development of the real sector of the economy.”