In a bid to assist in promoting infrastructural development in the country, the African Development Bank (AfDB) has offered $10 billion to Federal Roads Maintenance Agency (FERMA) for road and other infrastructure projects in Nigeria.
The bank’s delegation led by Dr Abayomi Babalola, a transport specialists/consultant to the bank disclosed this while on a visit to FERMA headquarters in Abuja.
How the funds would be disbursed: Babalola made known that the $10 billion loans, which would be used to address funding gaps in FERMA’s operations would be disbursed to different sectors of the economy for a period of 10 years.
He, however, observed that the transport sector had not received much-desired intervention from the bank and informed the management of FERMA that his team was at the agency to identify road projects in Nigeria that can be funded through a well-monitored project circle.
According to Babalola, the projects would be of national priority and devoid of political encumbrances. He requested the agency to forward needs and projects that meet these criteria, which will eventually be funded by the bank.
Details: Managing Director FERMA, Nuruddeen Rafindadi appreciated the bank for its contribution towards infrastructural development in the country as he lamented the poor state of roads in the country which he blamed on funding.
Rafindadi assured that when the loan arrangement is approved by the Federal Ministry of Finance, the selected road projects would be effectively executed. Speaking further, he also said that the FERMA and the AfDB would enhance their partnership in order to make Nigerian roads motorable all year round.
“Some of the roads that would benefit from this may not be viable for privatization because of low traffic density, but they are important due to their connection to rural areas with heavy agricultural activities,” he said.