Infrastructure: Nigeria Tasks World Bank, IMF On Renewable Energy

BY SEGUN ADEBAYO, ABUJA – Nigeria says commitment by the World Bank Group and the International Monetary Fund (IMF) to scale up provision and access to renewable energy will deliver development results and ensure global climate goals are achieved.

Minister of Finance, Minister of Finance, Mrs Kemi Adeosun said such obligation presents a “win-win area” in not only engendering development results but also contributing to climate goals attainment on the global level.

Mrs Adeosun canvassed Nigeria’s position on renewable energy and regional integration at the G-24 Finance Ministers and Central Bank Governors meeting in Washington D.C, United States.

“We have a major energy infrastructure gap to meet the needs of industrialization. Providing access to energy to all parts of Nigeria, both urban and rural, is a priority.

“If we succeed, we estimate that this could unleash the development potentials of two-third of our population of 180 million.”

According to her, generating renewable energy remains a financially attractive option for reaching rural populations, adding that synergy and harmonization of business models from other countries will help throw up an acceptable template for providing affordable energy globally.

The Minister, who spoke for Nigeria and 30 other countries at the G-24 Ministers and Governors Forum, stressed the need for the IMF and World Bank Group to reinforce regional integration process, adding that such support would boost trade between countries and serve as a potential economic growth driver.

Mrs Adeosun said; “We believe that part of the solution must be regional, multi-country initiatives on infrastructure development. Though complex and often not easy to undertake, there are also successful cases of such projects.

“For instance, a coastal super highway from Lagos to Dakar in West Africa would cut across 11 economic territories. Another Trans-Sahel highway from North-west Nigeria to Mauritania would provide access and boost economic activities of land-lock countries like Niger, Burkina Faso and Mali.”

In her speech, IMF Managing Director, Christine Lagarde urged caution by low-income countries in dealing with investors, noting that there was a huge surge yields on the path of investors.

Also speaking, World Bank’s Chief Executive Officer, Kristalina Georgieva charged developing countries to explore other sources of funding away from the current reliance on the Paris Club.

“It is imperative for us to maximize finance for development and also critical for us think of comparative strength for significant finance to flow into developing countries”, Georgieva said.

On energy deficiency, the World Bank boss said developing countries should urgently identify what to do in creating a favourable environment for renewable energy.

Rising from its meeting, the G24 Ministers and Governors urged the World Bank Group and the IMF to sustain and strengthen their support by improving domestic resource mobilisation and enhancing its contribution to inclusive growth through progressive tax policies, as well as more efficient and better targeted public spending.

In its communiqué, the Forum reiterated the importance of scaling up infrastructure investments to achieve sustainable development goals.

It stated thus; “We welcome the support of the IMF, the World Bank and other international Financial Institutions in increasing the efficiency of public investments in infrastructure, as well as their impact in improving connectivity, including at the regional level, and addressing distributional and climate objectives”.

The communiqué also urged Multilateral Development Banks (MDBs) to deliver on their ‘Joint Declaration of Aspirations on Actions to Support Infrastructure Investments’, including through concrete and time-bound actions.

It said such support will help develop new risk mitigation instruments and infrastructure investment as an asset class, adding; “We support a quota-based, adequately-resourced IMF that is less dependent on borrowed resources. We call for at least maintaining the current lending capacity of the IMF.”

It is also group’s position that both organizations should strengthen efforts at greater representation of under-represented regions and countries in recruitment and career progression, including at the managerial levels.