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The Federal Government has called on the Bank of Industry (BOI) and other Development Finance Institutions (DFIs) in Nigeria to provide adequate funding for emerging sectors of the economy.
This appeal was made by the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, during the 4th Annual General Assembly of the Association of Nigerian Development Finance Institutions (ANDFI) held in Abuja. The event was themed “Financing Emerging Sectors for Growth: The Role of Development Finance Institutions.”
Represented by Mohammed Bala, Chairman of the BOI Shareholders Committee, Uzoka-Anite emphasized that emerging sectors are crucial for unlocking Nigeria’s economic growth potential. She identified key sectors such as renewable energy, biotechnology, information technology, sustainable agriculture, and culture as pivotal to the country’s future economic landscape.
“These sectors, if well-funded, can generate significant economic value and address critical challenges including climate change, infrastructure deficits, food security, and health concerns, which the Bola Tinubu-led administration is actively addressing,” Uzoka-Anite stated.
She acknowledged that these emerging 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 often makes traditional financial institutions reluctant to invest due to perceived risks and uncertain returns.
Uzoka-Anite also noted that the World Bank has highlighted Nigeria’s infrastructure deficit, which stands at 30% of its Gross Domestic Product (GDP), far below the international benchmark of 70%. To address this, Nigeria must invest $3 trillion to bridge the infrastructure gap, a goal that is achievable if DFIs demonstrate confidence in the economy by injecting necessary funds.
She highlighted the critical role of DFIs in creating an enabling environment for industrial and economic growth. Uzoka-Anite urged stakeholders, including the government, private sector, and development partners at sub-national levels, to collaborate closely to harness opportunities presented by emerging sectors.
“Together, we can build a more prosperous, innovative, and resilient economy that will be the envy of other nations. A well-developed financial sector is crucial for attaining sustainable and balanced growth, as well as improving the ease of doing business,” she added.
BOI Managing Director, Dr. Olasupo Olusi, also addressed the assembly, noting the significant role DFIs play in ensuring sustainable socio-economic development globally. He encouraged ANDFI members to collaborate by pooling their expertise, resources, and networks to unlock transformative projects.
“The government of President Tinubu has embarked on a renewed agenda aimed at driving Nigeria towards a trillion-dollar economy. Cooperation between federal and subnational governments, along with collaboration with the private sector, is critical to achieving this objective,” Olusi stated.
In his keynote address, delivered virtually, Prof. Kevin Urama, Chief Economist and Vice-President of the African Development Bank, highlighted the critical role of DFIs in the continent’s development. He pointed out that 10 of the 20 fastest-growing economies in the world are from Africa, underscoring the need for DFIs to provide adequate funding to emerging sectors.
“The era of cheap money is over, and now is the time for domestic and regional finance institutions to play a bigger role. Nigeria needs to invest in renewables, agriculture, manufacturing, infrastructure, and energy. ANDFI should focus on these sectors, prioritizing energy, agriculture, manufacturing, and industrialization,” Urama said.
The event was also attended by Temitola Johnson, Senior Special Assistant to the President on Job Creation and Micro Small and Medium Enterprises (MSMEs), and Dr. Rislanudeen Muhammad, BOI Chief Economist, among others.
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