The federal government said on Thursday that it would continue with external borrowings and draw downs from Sovereign Wealth Fund and the Pension Fund to support infrastructure delivery.
The Minister of State, Budget and National Planning, Prince Clem Ikanade Agba disclosed this at the official launch and presentation of the reviewed National Integrated Infrastructure Master Plan.
Prince Clem explained that the reason for funding infrastructure provision from these sources was because the yearly budgetary allocation available to fix and upgrade the nation’s infrastructure was too insignificant.
According to him: “To address the nation’s infrastructure deficit, the federal government has launched a National Integrated Infrastructure Master Plan (NIIMP).
“Presently, Nigeria needs US$150 billion yearly to implement the National Integrated Infrastructure Master Plan (NIIMP) between 2020 and 2030.
“This will amount to US$2.3 trillion required for the implementation National Integrated Infrastructure Master Plan implementation which the federal government says “is enormous and tasking”.
Prince Agba said the Federal Government alone could not provide all the needed resources, and therefore, a well-coordinated and strategic approach would be required to harness sufficient resources to increase the stock of Nigeria’s infrastructure to the desired level by 2043.
Besides investments by sub-national governments, Prince Clem 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 would 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 would “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.”
The Federal Ministry of Finance, Budget and National Planning, he disclosed “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 regards, 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, President of 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 enabling environment and legal framework had not been provided for its implementation since it was first initiated in 2014.
He pointed out that infrastructure was 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.
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
