(Ecofin Agency) - The African Export-Import Bank (Afreximbank), a Pan-African multilateral financial institution with the mandate of financing and promoting intra and extra-African trade, announced its intentions to invest $2.5 billion in Nigeria for infrastructure development to maximize the country’s economy.

According to the News Agency of Nigeria (NAN), the information was disclosed during Afreximbank’s board Chairman's visit to the Nigeria’s Secretary to the Government of the Federation (SGF). During the visit, Prof. Benedict Oramah, President/Chairman of Afreximbank in a statement said, “Today, we have the current transactions that on the implementation in Nigeria amount to 3.66 billion dollars. We have another 2.5 billion dollars in the pipeline.”

Infrastructure development is key to Nigeria's economic growth, typically for the federal government's economic diversification agenda to be realized. According to Moody's, a leading rating agency, Nigeria's infrastructure gap is estimated at $3 trillion and it is six times the size of its annual gross domestic product.

The federal government has so far reiterated its commitment to tackle the infrastructure challenge with a combination of initiatives including the public-private partnership model, concessioning and privatization of state-owned enterprises to close the gap. According to Proshare’s report, reducing the infrastructure gap will boost Nigeria's economic growth, and as well give the country a competitive advantage under the African Free Trade Continental Area (AfCFTA) agreement.

Prof. Benedict Oramah, who led his delegation, said the initial reason for the visit was to brief the SGF on other intervention programs in the areas of establishment of the African Medical Centre for excellence and African quality assurance center. It was also to inform the SGF of the plans to support Nigeria to start manufacturing Covid-19 vaccines given the situation in the country.

Solange Che