World Bank, AfDb Commends Nigeria’s Subsidy Investment, Power Sector Privatisation Success

The Minister of Finance, Dr. Ngozi Okonjo-Iweala

The African Development Bank has commended the federal government for investing the proceeds from the partial removal of fuel subsidy on the development of infrastructure as well as other sectors.

This is even as the World Bank lauded the Federal Government for the successful completion of the power sector privatisation and urged other African countries to tow the same line.

The commendations came on Sunday, at the opening session of the African Union’s Summit on Financing Infrastructure Development held in Dakar, Senegal.

The summit which has “Leveraging Public-Private Partnerships for continental infrastructure transformation” as its theme, was convened by President Macky Sall of the Republic of Senegal and Chairperson of the New Partnership for Africa’s Development (NEPAD) Heads of State and Government Orientation Committee.

Listing some achievements in the infrastructure sector across Africa , the Vice President Africa, World Bank, Mr. Mukhtar Diop, commended the Federal Government for the successful privatisation of the power sector in Nigeria.

“We must commend the leadership in Nigeria for the successful completion of the privatisation of the country’s power sector. The electric reforms in that country are one of the ways of solving Africa’s problems by Africans. We commend the country for that,” he said.

The President of the African Development Bank Group, Dr. Donald Kaberuka, on his part commended President Goodluck Jonathan for the partial removal of petroleum subsidy and for investing the saved money on infrastructure and education among others.

He said, “A lot still needs to be done. Energy has remained the main problem in almost all the African countries.

“We however commended President Goodluck Jonathan for the partial removal of subsidy and using the saved fund on education, infrastructure etc.

“We urge other African leaders to borrow a leaf from him in this regard.”

In his remarks, President Jonathan need that the continent could no longer solely rely on budgetary resources to finance the development of infrastructure adding that the summit was meant to tap from the experiences of countries and to identify various ways of mobilising the financial resources required to fix Africa’s infrastructure gap.

He said in Nigeria, his administration was mobilising domestic financial resources for infrastructure development.

He named some examples of such techniques to include the Sovereign Wealth Fund, Pension Funds, issuance of Dedicated Infrastructure Bonds, establishment and capitalisation of the Infrastructure Bank and the use of Public Private Partnerships.