The Federal Government has acknowledged the lack of adequate infrastructure as one of the major problems facing the nation’s economy and expressed total commitment to the development of infrastructure through Public Private Partnerships (PPP).
The Acting Director General, Infrastructure Concession Regulatory Commission, Mr. J A Michael Ohiani who said this on in his keynote address at the WorldStage Economic Summit 2022 #WorldStageEconomicSummit 2022) said the Federal Government’s seriousness was evidenced by the continuous commitment as provided in the 2021-2025 National Development Plan (NDP) which sought to encourage more private sector participation in National Infrastructure Development.
At the summit in Lagos with the theme “Nigeria’s Economy: Bridging The Infrastructural Gap, Ohiani who presented his address virtually through Dr. Amanze Okere, Head, Special Projects & Acting Coordinator, NII3P (a PPP Training Institute of ICRC), said as the NDP had a projected N348.1 trillion, with the entire government programme to provide about NGN 49 trillion.
He said the remaining amount was projected to be provided by the private sector.
“This has been the trending truth over the years, that the revenue to our government cannot meet the needed infrastructure quantum and speed,” he said.
The summit which was supported by the CBN, NLNG, Zenith Bank, Access Bank, Polaris Bank and Ecobank, had Dr Oluseye Samuel Ajuwon, a lecturer/researcher in economics at the University of Lagos as the presenter of the lead paper.
The ICRC boss acknowledged that infrastructure drives the economic growth and development of any nation, but Nigeria over the years, produced several Development plans, “but unfortunately, we have not yet upscaled our infrastructure stock to the level which would drive the economy as expected.
He said: ” It is also common knowledge that the government alone cannot afford to provide the funding necessary to bring our infrastructure up to the level that it needs to be in order to stimulate much needed economic growth.
“Even though the global pandemic has dealt a blow to economies around the World, we in Africa and indeed Nigeria, have been blessed to have remained sturdy and focused on infrastructure spending and the necessary diversification of our economy. But we need to do more. We need more investments, more innovative ideas on infrastructure development using already proven and trusted techniques from around the World, and more commitment from the private sector towards the actualisation of these goals,” he said.
He listed some of the achievements of ICRC in the past 14 years to include Federal Executive Council Approval for more than 50 projects, amounting to more than N3 trillion in private sector funds, and is currently providing regulatory guidance on more than 200 projects.
“As part of the ICRC mandate, we gazette and publish a list of PPP eligible projects annually, so that prospective investors will know when and what to invest in,” he said.
Dr Ajuwon in his lead paper identified underdevelopment of physical infrastructures as the major constraints confronting Nigeria economic and social development over the years.
“These critical infrastructures have gradually decayed over time due to neglect,” he said.
“The poor performance and inefficiency in the operation of the nation’s infrastructure has been described as major constraints to industrial performance and productivity growth.
“As a result, the average growth rate of the national economy has stagnated and stunted around 5.0 percent for many years.
“This is because the state of our infrastructure does not encourage investment. Unfortunately, we have now added insecurity to the problem of inadequate and decayed infrastructure.”
On the way forward, the economic expert said the desire for true patriotic leadership in Nigeria is most needed for ensuring sustainable infrastructure development.
He said the Nigerian government must commit to providing good governance and ensuring public infrastructures are well protected, managed, and maintained.
“On-going and future developments should be closely monitored while ensuring that the projects are awarded on merits, and practical timelines are given and strictly followed for completion,” he said.
“The government should continue in its fight against corruption and addressing excessive spending in governance.
“Also, government facilities should be appropriately managed and put into effective and efficient use.
“Furthermore, credit facilities for infrastructural projects should be made easily accessible with minimum interest rates.”