Nigeria requires $3 trillion to fund infrastructure projects: Minister

Posted by News Express | 19 August 2016 | 1,725 times

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About $3.05 trillion will be required over the next 30 years to implement the National Integrated Infrastructure Master Plan (NIIMP), the Minister of Budget and National Planning, Senator Udoma Udo Udoma disclosed in Abuja on Thursday.

The plan which will be executed in collaboration with Federal and State governments as well as the private sector will see the public sector taking 52% of the load with the private sector underwriting the balance in the first five years of the plan.

The Minister who received the Report of a 3-Day Pre-Summit Workshop from the Infrastructure Private Public Partnership Summit Group (PPPSG) said the NIIMP is a blueprint for accelerated infrastructure development in the country over the next 30 years (2014 -2043); which seeks to raise the stock of infrastructure from the current level of 20%-25% of the GDP to at least 70% by 2043.

The PPP Summit Group has a responsibility to chart a course for the PPP funding in some critical sectors as well as establish a private sector led Community of Practice to work in collaboration with government across all levels to ensure the successful implementation of infrastructure roadmaps.

Investments in the NIIMP are geared towards meeting infrastructure requirements of the major sectors of the economy including Energy, Transport, ICT, Agriculture, Water and Mining, Housing, Social Infrastructure and Security and Vital Registration.

The Minister explained that apart from being a robust framework for infrastructure development, the NIIMP will also serve as investors’ guide, enhance economic growth and create job opportunities among other benefits.

The plan outlines a financing plan for the public sector component of the investment requirement with four major options – public budgets, loans, pension funds and sovereign wealth fund as well as public private partnership (PPP)

He reiterated the importance of infrastructure in turning the economy of the country around and pointed out that in his resolve to revamp the economy, President Mohammadu Buhari is determined to attract as much private sector investment as possible to enable a quick turnaround. 

Chairman of the PPP Summit Group, Barrister A. B. Mahmoud, since it would be impossible for government to bridge the existing infrastructure gap within a reasonably short period, it becomes necessary for collaboration with the private sector to achieve the purpose.

He said however that the private sector will only get involved in the execution of projects if the plans are well laid out and attractive; which is why the group is out to chart a course for the PPP funding to ensure the successful implementation of infrastructure roadmaps.

•Photo shows Udo Udoma.

Source: News Express

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