The President of African Development Bank (AfDB), Dr. Akinwumi Adesina, has issued a sobering warning on Nigeria’s economic trajectory, cautioning the country risks long-term stagnation unless it confronts its chronic infrastructure and power deficits head-on.
Speaking at the 20th Anniversary Dinner of Chapel Hill Denham in Lagos, Adesina painted the picture of a country full of potential, but hampered by policy inaction and weak execution.
He urged Nigerian policymakers and investors to move boldly in reforming key sectors if the country is to reclaim its economic future.
The AfDB president stated, “Without reliable power Nigeria’s economy will be locked in a never-ending slow growth trajectory, without transformation. You cannot industrialise, you cannot compete, and you certainly cannot create jobs at scale if you don’t have electricity.
“Access to power is not just about lights, it’s about productivity, competitiveness, and prosperity.”
He stressed that electricity access will be pivotal in unlocking Nigeria’s digital economy, attracting data centres, enabling artificial intelligence applications, and lowering costs for small and large businesses.
Adesina said, “The digital economy cannot thrive on diesel generators. We must create a 21st-century grid, powered by clean, reliable, and scalable energy solutions. And for that, the private sector must be at the heart of the energy transition.”
Adesina called for structural reforms to encourage greater private investment in Nigeria’s energy sector. He identified areas needing improvement to include cost-reflective tariffs, enforceable power purchase agreements, and access to blended finance from multilateral institutions, like AfDB and World Bank.
He stated, “The market must work, investors need clarity, certainty, and contracts that are bankable. With the right regulatory environment, Nigeria can become a hub for green energy, not just for itself, but for West Africa.”
Adesina revealed that AfDB, in partnership with World Bank, had launched “Mission 300”, an ambitious initiative to connect 300 million people in Africa to electricity by 2030.
“Nigeria should position itself to be a major beneficiary of this, it is time to accelerate electrification with urgency and scale,” local media reports quoted Adesina as saying.
Adesina also warned that Nigeria’s broader infrastructure shortfall was impeding industrial growth and regional competitiveness.
He called for renewed efforts to mobilise long-term capital, especially pension and sovereign wealth funds, into infrastructure as an asset class.
“Nigeria must build world-class infrastructure, from highways to railways, speed trains, airports, seaports, telecoms, and broadband connectivity.
“If we do not fix our logistics bottlenecks, we will continue to lose in the African Continental Free Trade Area,” he said.
“Let us be clear, no investor will stay in a market where they cannot move goods efficiently or communicate seamlessly. Infrastructure is not a luxury. It is the foundation of every competitive economy,” he added.
Adesina urged Nigeria to adopt modern financing models, such as “originate-to-distribute”, and de-risk infrastructure projects to make them more bankable. He also called for deeper local capital markets and the expansion of local currency financing for large-scale projects.
GIK/APA