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AfDB to develop, structure innovative finance instruments in Africa

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The African Development Bank (AfDB) is collaborating with African countries to develop and structure innovative financing instruments to address insecurity and challenges to economic growth investment and development in the continent.

President of AfDB, Dr Akinwumi Adesina, said this at the fourth edition of the Africa Resilience Forum (ARF 2021), a high-level flagship event of the bank, held virtually on Tuesday.

The event had as its theme: “Covid-19 and Beyond: Working Together for a Resilient Continent”.

The event is aimed to reflect on policies and approaches that support the continent’s efforts around conflict prevention, peace, and state-building initiatives.

Adesina stressed that there was a compelling case for innovative financing mechanisms to tackle challenges that faced the continent.

He called on all partners to work towards strengthening interventions that responded to such challenges.

“Only by working together as humanitarian, peace and development partners can we, effectively, address root causes and focus on strengthening interventions that respond to what I call disaster triangle which has to do with unemployment, environmental degradation and extreme poverty.

“Wherever you find these disaster triangles, you have instability and insecurity. There is, therefore, a compelling case for innovative financing mechanisms to tackle these challenges.

“Recognising this critical link between security, economic growth, investment and development, the African Development Bank (AfDB) is collaborating with African countries to develop and structure innovative financing instruments.

“This includes security index investment banks to mobilise resources to address the root causes of insecurity and project investments and livelihoods,” he said.

The AfDB president also emphasised the need to focus on tackling the effects of climate change and reiterated the bank’s commitment to double its climate adaption finance to 25 billion dollars by 2025.

“We have expanded the percentage of financing devoted to climate adaptation from 26 per cent in 2016 to 67 per cent in 2020.”

He further stressed the need to increase investment for social protection, safety nets, and resilient and affordable healthcare systems to reduce the effects of the COVID-19 on the continent.

“We must also prioritise job creation especially for the youth that is why the bank created the Youth Entrepreneurship and Innovation Multi-Donor Trust Fund, an initiative to support Africa’s entrepreneurship ecosystems that help to create 25 million jobs by 2025.

Also, he reiterated the importance of women to further drive inclusive and resilient growth through the bank’s Affirmative Finance Action for Women in Africa which supported women-enabled businesses.

“To be clear, when women thrive, Africa prospers,” he emphasised.

Adesina urged Africa not be deterred by the enormous challenges facing the continent adding that resilient economies, communities and people promoted peaceful, stable and prosperous nations.

In his address, Chairperson, African Union Commission (AUC), Mr Moussa Mahamat called on African countries to remain focused and harness their human and natural resources which were “huge assets” for resilience.

“Africa’s assets for full resiliency are huge. The challenge is to reach resilience and fast-track economic growth by harnessing our natural resources and attention to our agricultural production.”

Mahamat said the pandemic had helped the continent to identify categories of population and economic sectors that were vulnerable and required a new vision for reform.

“Flagship programmes that are found in the 2063 Agenda show that gradually, on a macro management perspective, we are giving ourselves a tool for resilience, ongoing reforms and establishment of the African Continental Free Trade Area pathways for our development and self-centred growth.

“We have to count on our intra-African solidarity and promoting principles within which to set up mechanisms for shock management.

“In this regard, creating financing tools to manage this risk is vital. I call on you create all the tools because it is worthwhile and the situation calls for such tools,” he said.

He further stressed an important aspect of institutional reform which is building new forms of partnerships.

He, however, emphasised the need for reliance on the AUC’s own efforts “without turning our backs to our strategic partners”.

“That is our vision of a renaissance, of multilateralism which we are all yearning for.

“The issue of financing, particularly debt management, financing peace as well as renovating developmental aid should be raised within the framework of the rebirth of multilateralism.”

Mahamat also stressed the need to have an efficient combination of all forces of the continent for the vision of resiliency to take root in the governance, political and social practices of the continent.

ARF 2021 aims to provide a platform for sharing experiences, lessons learned, and co-create innovative solutions based on global and regional trends to address fragility and build lasting resilience on the African continent.

The three-day forum would end on Thursday. (NAN)

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Business & Economy

FG Rules Out Electricity Tariff Hike, Targets 24-Hour Power Supply

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The Federal Government has ruled out any plan to increase electricity tariffs, saying its priority is to improve power supply and ensure reliable electricity across the country.

The Minister of Power, Joseph Tegbe, gave the assurance in Ibadan, Oyo State, on Thursday, amid concerns and speculation about a possible increase in electricity tariffs.

Tegbe spoke during the groundbreaking ceremony for five interconnected mini-grid projects with a combined generation capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS).

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariffs. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” the minister said.

He urged Nigerians to disregard reports suggesting an impending tariff hike, stressing that the government was focused on improving electricity generation, transmission and distribution.

The five mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega. They are expected to provide electricity to communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu Local Government Areas of Oyo State.

According to the minister, the projects are designed to expand electricity access, reduce dependence on petrol and diesel-powered generators, and create a more favourable environment for businesses, investment and job creation.

Tegbe said the Federal Government was also implementing a broader energy strategy aimed at improving electricity supply through designated energy corridors, including the Lagos-Ogun, Abuja-Kaduna-Kano and Benin-Enugu-Port Harcourt corridors.

He added that efforts were underway to strengthen the national grid and upgrade generation and transmission infrastructure across the country’s eastern, western and central corridors.

The minister described the mini-grid initiative as part of President Bola Tinubu’s Renewed Hope Agenda, noting that similar electricity interventions had been implemented in communities across several states with support from the Rural Electrification Agency (REA).

He commended Tinubu for his leadership and acknowledged the contributions of the REA, project developer Paras Energy and Natural Resources Development Limited, the World Bank and the Ibadan Electricity Distribution Company.

Tegbe also recognised the Oyo State Government, traditional rulers and other stakeholders for their roles in facilitating the projects.

The initiative is expected to improve electricity reliability in the beneficiary communities, support local economic activities and reduce energy costs for households and businesses.

 

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Oyedele Warns Against New Taxes, Urges Governments to Explore Revenue Alternatives

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President Bola Ahmed Tinubu
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Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has cautioned governments against imposing new taxes or increasing the tax burden on vulnerable citizens and productive sectors amid economic pressures.

Oyedele spoke on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand, where he presented the communiqué of the Intergovernmental Group of Twenty-Four (G24), which he chairs.

The minister said governments should prioritise identifying areas of savings, improving revenue mobilisation and strengthening fiscal management rather than introducing additional tax burdens that could further strain households and businesses.

“This is the wrong time to impose new taxes or increase the burden of tax, particularly on the vulnerable population and productive sectors of the economy,” he said.

Oyedele made the remarks while responding to questions on how developing countries could reduce debt-servicing costs without cutting essential public expenditure.

He urged governments to look inward for savings and explore more efficient ways of generating revenue while protecting vulnerable populations from further financial pressure.

On public borrowing, the minister said debt financing remained necessary to support economic growth but stressed that borrowed funds should be deployed to stimulate job creation and promote inclusive development.

He noted that governments should prioritise limited public resources for essential services, including healthcare and education, while leveraging private capital to support other investment needs.

Oyedele also cautioned against treating taxation and borrowing as mutually exclusive options, explaining that both have economic implications and must be carefully balanced.

According to him, excessive taxation of vulnerable households could reduce their capacity to afford basic necessities, including food, healthcare and education.

He described public debt as a future tax burden, emphasising the need for governments to adopt fiscal policies that balance present revenue needs with long-term economic sustainability.

“Debt is future taxes, so it’s not one or the other. It’s to strike a balance, bearing in mind ultimately that the essence of tax and of debts is to cater for the people,” he said.

The minister’s remarks underscore the need for developing economies to strengthen domestic revenue mobilisation, improve public spending efficiency and manage debt sustainably without undermining household welfare or productive economic activities.

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Over 67,000 Nigerians Benefit From Consumer Credit Scheme — Tinubu

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President Bola Ahmed Tinubu
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President Bola Tinubu has said that 67,512 Nigerians across 25 states and the Federal Capital Territory (FCT) have so far benefited from credit backed by the National Credit Guarantee Company (NCGC).

Tinubu disclosed this on Monday in a series of posts on his official X account as Nigeria prepares to celebrate its 66th Independence Day.

According to the President, the NCGC has issued ₦21.59 billion in guarantees, enabling participating financial institutions to provide ₦46.95 billion in loans.

He said 11,374 of the beneficiaries are women, while 33.5 per cent are first-time formal borrowers.

Tinubu noted that more than 22,000 Nigerians had entered the formal credit system for the first time through the scheme, giving them an opportunity to build credit records that could improve their access to future loans.

The consumer credit scheme was launched in July 2026 by the Nigerian Consumer Credit Corporation (CREDICORP), in partnership with the Federal Ministry of Communications, Innovation and Digital Economy.

The President said the initiative was part of his campaign promise to move Nigeria towards a credit-based economy and make financing more accessible to individuals and businesses.

He said CREDICORP enables working Nigerians to access consumer credit, while the National Education Loan Fund (NELFUND), Bank of Industry and Development Bank of Nigeria provide financing in other sectors.

Tinubu explained that the NCGC was established to reduce the risks faced by financial institutions when lending to businesses and individuals without sufficient collateral or credit history.

He said the company currently works with 19 financial institutions, comprising 13 commercial banks, three microfinance banks and three development finance institutions.

The President added that businesses supported through the NCGC scheme were estimated to have created 661,291 direct and indirect jobs.

He said the impact of the scheme showed how government reforms could translate into economic opportunities for Nigerians.

“Our reforms laid the foundation. Credit gives Nigerians the means to build on it,” Tinubu said, adding that the Federal Government would continue to expand access to credit across the country.

He described the development as evidence of his administration’s efforts to fulfil its campaign promises, saying, “Promise made, promise kept. We are moving from reforms to opportunities. Nigeria First.”

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