The African Development Bank (AfDB) says its portfolio in Nigeria is one of the largest among the Regional Member Countries (RMCs), with a total commitment value of $4.4 billion.

Lamin Barrow, director-general of the Nigeria Country Department of AfDB, made this statement during the Joint Country Portfolio Performance Review (CPPR) Workshop held on Friday in Abuja.

Mr Barrow mentioned that this portfolio consists of 48 operations, fairly evenly distributed between public and private sector activities.

According to the director-general, some of the portfolio’s performance metrics have improved since the 2022 CPPR Workshop.

He stated, “In particular, the operations flagged for implementation challenges decreased from 36 percent in January to 32 per cent in September.

“This improvement results from collective efforts by the Federal Ministry of Finance, the Executing Agencies, and the Bank to reduce startup and implementation delays.

“Indeed, the time taken to meet loan effectiveness and first disbursement conditions has been excessive. I must acknowledge the recent unprecedented development with the Federal Executive Council’s (FEC) approval of the Ekiti Knowledge Zone project.”

Mr Barrow also noted that the share of startup delays had been reduced from 32 percent of flagged operations in June to 28 per cent in October.

He anticipates that it will reach 8 per cent by the end of 2023 with timely and targeted actions for some projects.

He pointed out that despite the progress, the bank has yet to reach its target for flagged operations, which is 20 per cent.

“Since the outbreak of the COVID-19 pandemic, annual disbursements have gradually increased, rising from UA 93 million in 2021 to UA 143 million in 2022 and projected to reach UA 165 million by the end of December.

“Fiduciary compliance has also improved, with progress observed in the submission rate of audited financial statements by the Executing/Implementing Agencies for the Financial Years 2021 and 2022.

“In the area of Environmental and Social Safeguards, enhanced collaboration between the Bank and the Ministry of Environment has facilitated the timely disclosure of safeguard instruments, especially Environmental and Social Impact Assessments (ESIAs) and Resettlement Action Plans (RAPs) for projects,” he said.

Mr Barrow commended President Bola Tinubu’s administration for the bold reforms initiated to address macroeconomic imbalances and structural issues in the economy.

He mentioned that these reforms, particularly the removal of fuel subsidies and the unification of exchange rates, would help reignite a higher economic growth trajectory, despite the short-term hardships for the population.

The director-general expressed hope that the meeting would accelerate the delivery of results on the ground for the people of Nigeria.

Also, speaking at the workshop, the Director of the International Economic Relations Department (IERD) at the Federal Ministry of Finance, Budget, and National Planning, Stanley George, commended AfDB’s partnership in achieving Nigeria’s national development priorities.

Mr George decried some of the challenges that hinder seamless implementation of the portfolio and expressed hope that the workshop would provide a platform to address them.

He listed some of the challenges, including a long implementation period, a low disbursement rate, poor communication with the various MDAs, and issues of ineligible expenditures.

“Today’s meeting therefore is to present implementation progress, discuss some of these challenges, the opportunities that are there for us to move the portfolio in the desired direction.

“And how best we can foster maximum development impact to move Nigeria forward through these complementary efforts.

“The portfolio of over $4 billion is a loan to be paid by our children and grandchildren.

“The least we can do for them is to ensure that these projects are implemented in a timely manner, so that the outcomes will improve the quality of life for the people. An outcome-oriented approach should be our guiding principle,” he said.

(NAN)