The Federal Government said it will continue with external borrowings and drawdowns from Sovereign Wealth Fund (SWF) and the Pension Fund to support infrastructure delivery.
The reason for funding infrastructure provision from these sources is because the yearly budgetary allocation available to fix and upgrade the nation’s infrastructure is too insignificant.
Minister of State, Budget and National Planning Prince Clem Agba made these revelations yesterday in Abuja at the formal launch and presentation of the reviewed National Integrated Infrastructure Master Plan (NIIMP).
To address the nation’s infrastructure deficit, the government has launched the NIIMP.
Presently, Nigeria needs $150 billion yearly to implement the NIIMP between 2020 and 2030.
This will amount to $2.3 trillion required for the implementation of the masterplan which the government said “is enormous and tasking”.
Prince Agba said the Federal Government alone cannot provide all the needed resources therefore, a well-coordinated and strategic approach will be required to harness sufficient resources to increase the stock of the country’s infrastructure to the desired level by 2043.
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Besides investments by sub-national governments, Prince Agba noted that “the private sector is expected to play an increasing role either directly or in collaboration with the government through the Public Private Partnership (PPP)”.
Governments at both the national and sub-national levels he said will be “providing a supportive environment with stable and transparent policies, rules and regulations required for a robust PPP investment”.
He stated that the Federal Government will “continue to explore external borrowing as well as opportunities created by other government controlled sources such as the Sovereign Wealth Fund and the Pension Fund to support infrastructure delivery.
He said the Federal Ministry of Finance, Budget and National Planning “has established an Infrastructure Delivery Coordinating Unit (IDCU) within the Ministry to effectively coordinate the implementation of the NIIMP with other stakeholders including MDAs, sub national governments, the private sector, international donor partners etc.
“In this regard, the MDAs would be required to set up Infrastructure Delivery Units to ensure effective coordination with IDCU on infrastructure development.
“Likewise, the sub-national governments will be required to develop States Integrated Infrastructure Master Plan in tandem with the aspirations and objectives of the NIIMP” he said.
In his goodwill message, the Director-General, Infrastructure Concession Regulatory Commission (ICRC) Barr Micheal Ohiani said the share of the private sector in total investment requirement in the NIIMP “is estimated at 56 per cent while the public sector (Federal and States) accounts for the remaining 44 per cent”
“PPPs are expected to finance about $84 billion in participation from the private sector”.
On his part, President, Manufacturers Association of Nigeria (MAN), Mansur Ahmed, underscored the need for faithful implementation of the NIIMP by the government and other critical stakeholders.
Ahmed observed that the enabling environment and legal framework had not been provided for its implementation since it was first initiated in 2014.
He pointed out that infrastructure is the backbone of economic development.
He however, commended the Federal Government for the review of the NIIMP especially at the time when the African Continental Free Trade Agreement was being implemented.