The African Development Bank (AfDB) has predicted that Nigeria's economic outlook in 2018 and will be positive.
"The bank's support will help the government's reform agenda, provide further fiscal space to help the most vulnerable segments of the population, and improve the quality of life and well-being of its citizens", Abdoulaye Coulibaly, Acting Director of the bank's Governance and Public Finance Management Coordination Unit, said in a statement by AFDB.
The bank in its 2018 African Economic Outlook projected Nigeria's economic growth at 2.1 per cent in 2018 and 2.5 per cent in 2019.
"Africa now collects about $500bn in tax revenue every year, $50bn in foreign aid, $60bn in remittances, and $60bn in foreign direct investment inflows".
He announced that the Bank would organise the Africa Investment Forum on November 7-8, 2018 in Johannesburg, South Africa, to mobilise funds for infrastructure development, to bridge an estimated funding gap of $130-$170 billion a year, up from previous estimates of USA $100 billion per year.
"With such a large infrastructure gap, and urgent needs in health, education, administrative capacity, and security, Africa has to attract private capital to accelerate the building of critical infrastructure needed to unleash its potential".
The 2018 African Economic Outlook focuses on macroeconomic development and structural changes, and outlines economic prospects for 2018.
The bank is hopeful that with better strategies, sustained and inclusive growth can still be achieved in the context of a large infrastructure gap.
Its estimated a 4.1% GDP growth for Africa this year. "One of the key factors retarding industrialization has been the insufﬁcient stock of productive infrastructure in power, water, and transport services that would allow ﬁrms to thrive in industries with strong comparative advantages", the report stated.
Last year's spurt has a range of explanations, including a recovery in prices for oil, which helped petroleum exporter Nigeria, Africa's most populous country.
Noting that economic diversification is key to resolving numerous continent's difficulties, Adesina urged African governments to encourage a shift towards labour-intensive industries, especially in rural areas where 70% of the continent's population resides.
The African Economic Outlook was first published in 2003 and launched mostly in various African capitals outside the Bank's headquarters in May each year.
"To take advantage of the great potential for infrastructure development, governments will have to put in place effective institutional arrangements to manage the complex tasks of project planning, design, co-ordination, implementation, and regulation".