The Lagos State Government and the International Finance Corporation (IFC) have sealed a major partnership to enhance provision of infrastructure in key sectors and strengthen the State’s long-term financial sustainability through improved revenue generation strategies.
The State’s Commissioner for Finance, Akinyemi Ashade, in a statement on Wednesday, said a Memorandum of Understanding (MoU) on the partnership dated January 7, 2019 had already been signed, and expressed optimism that the development would go a long way in helping to scale up municipal infrastructure, increase revenues and generally make life more comfortable to residents of the State.
In furtherance of the agreement, Ashade said IFC, which is a member of the World Bank Group, would seek to provide advisory services to enhance infrastructure development in key areas including power, education, health, environment and transport, with special focus on provision of electric buses, among others.
Giving details, the Commissioner said: “IFC’s advisory services will be designed to improve procurement for key transport projects and support project development in areas including power, transport, municipal waste, health, education and energy efficiency.
“IFC will also be able to advise on strategies and policies for electric buses and ride-hailing services and assist Lagos State on its revenue mobilization strategies.
“We welcome IFC’s support and are confident that signing this memorandum will translate into viable infrastructure projects, expertise building and better access to financing for the benefit of all Lagosians.”
Also speaking, IFC’s Country Manager for Nigeria, Eme Essien expressed excitement with the partnership, saying it was in line with the organization’s program tagged ‘IFC’s Cities Initiative’ aimed at mobilizing commercial financing for priority urban projects, connect cities with capital markets, and to help improve municipalities’ credit-worthiness through financial management training.
Revealing that a total of $13.5 Billion had been invested over the last 15 years across more than 70 countries through the initiative, Essien said the program essentially supports efforts to build inclusive, safe, resilient, and sustainable cities that open new markets, and create opportunities for all.
“Today’s announcement is only a first step in the building of a long term strategic partnership with the largest municipality in Sub-Saharan Africa. Our objective is to support Lagos State’s efforts through IFC’s Cities Initiative to improve living conditions, expand and renew its infrastructure, and help reinforce Lagos’s position as an attractive investment destination — and by extension Nigeria’s position,” Essien said.
With a population of 24 million, Lagos State is Nigeria’s economic epicenter and main hub for commercial and industrial activities, accounting for more than 30 percent of the country’s Gross Domestic Product (GDP).
Faced with a fast-growing population, the State has been working to improve its economic and social infrastructure to enhance economic development, while it aims to become Africa’s third largest economy, measured by GDP, by 2023.