The Federal Government has urged the Bank of Industry (BOI) and other Development Finance Institutions (DFIs) in Nigeria, to provide adequate funding for emerging sectors of the economy.
The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, made the call during the 4th Annual General Assembly of the Association of Nigerian Development Finance Institutions (ANDFI) on Thursday in Abuja.
The theme of the event was “Financing Emerging Sectors for Growth: The Role of Development Finance Institutions.”
Uzoka-Anite, who was represented by the Chairman of BOI Shareholders Committee, Mohammed Bala, said that the emerging sectors were key to unlocking the country’s economic growth potential.
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She identified some of the emerging sectors as renewable energy, biotechnology, information technology, sustainable agriculture, and culture among others.
According to her, emerging sectors represent the future of the global economy but lacked sufficient finding to create the needed impact in Nigeria.
“These sectors, if well-funded, are poised to generate sufficient economic value and address some of the most pressing challenges of our time.
“These include climate change, infrastructure, food security, and health, which President Bola Tinubu-led administration is confronting.
“We are aware that these sectors often face unique challenges such as high initial investment costs, long development timelines, and the inherent risks associated with pioneering new technologies and business models.
“This is why traditional financial institutions are often reluctant to invest in these sectors due to passive risks and uncertain returns.”
Uzoka-Anite said that the World Bank has placed Nigeria’s infrastructure deficit at 30 per cent of its Gross Domestic Product (GDP), which falls short of the bank’s international benchmark of 70 per cent.
The minister added that the bank had projected that Nigeria must invest three trillion dollars to reduce its infrastructure deficit.
This, according to her, is attainable, if the DFIs in Nigeria could have confidence in the economy enough to inject the necessary funds.
She acknowledged the institution’s role in fostering an enabling environment for industries and the economy to grow.
She urges stakeholders, particularly government, private sector, and development partners at the sub-national level, to collaborate closely to harness the opportunities presented by emerging sectors.
“Together we can build a more prosperous, innovative, and resilient economy that will be the envy of other countries.
“This is because a well-developed financial sector is crucial for attaining sustainable and balanced growth, as well as ease of doing business,” she said.
Earlier, BOI Managing Director, Dr Olasupo Olusi, also noted that DFIs significantly ensured sustainable socio-economic development globally.
Olusi urged ANDFI members to collaborate by combining their expertise, resources, and network to unlock transformative projects.
“The government of President Tinubu has embarked on a renewed agenda that set a blueprint for driving Nigeria towards a trillion-dollar economy.
“Cooperation between the federal and subnational governments, as well as collaboration with the private sector is critical to this objective,” Olusi said.
In his keynote address, delivered virtually, Prof Kevin Urama, Chief Economist and Vice-President of the African Development Bank, equally described DFIs as critical to the continent’s development.
According to him, 10 out of the 20 fastest-growing economies in the world are from Africa.
“This underscored the need for DFIs to provide adequate funding to emerging sectors of the economy.
“The era of cheap money is over, and the time for domestic and regional finance institutions to play a bigger role is now.
“Nigeria needs to invest in renewables, agriculture, manufacturing, infrastructure and energy.
“ANDFI needs to look at each of these sectors and investing in energy as a priority is a good way to go; investing in agriculture is vital; and manufacturing and industrialisation are also key areas of focus,” Urama said.
BRANDPOWER reports that the event was attended by the Senior Special Assistant to the President on Job Creation and Micro Small and Medium Enterprises (MSMEs), Temitola Johnson and the BOI Chief Economist Dr Rislanudeen Muhammad, among others.
