(Ecofin Agency) - The African Development Bank (AfDB) will lend Nigeria $4.1 billion to finance its agriculture and power industries, between 2016 and 2017, said Akinwumi Adesina, the bank’s director. The bank aims here to help the nation overcome its budget deficit and develop infrastructures.

“All in all we have a portfolio of $4.1 billion dollars from 2016 to 2017 but we intend to raise it to a portfolio of $10 billion dollars in 2019 for Nigeria to work with government to deepen investment,” he said.

Nigeria presently records a power deficit resulting from the damaging of its gas infrastructures that paralyzed their operation. Subsequently, the country generated an average of 3,000 MW this year for a capacity of 5,000 MW and a demand of 12,000 MW. Pairing of this slowdown with global slump in prices of oil (which provides 70% of Nigeria’s earnings) worsened the gap.

To reduce its dependency on oil and gas, Africa’s second largest economy has also initiated procedures to diversify its economy focusing on key sectors such as agriculture. A smart move according to experts given that Nigeria used to be an agricultural power.

Gwladys Johnson