Nigeria is on the path of raising her infrastructure stock from the current 40 per cent of the Gross Domestic Product, GDP, to at least 70 per cent by 2043 and she requires a princely $2.3 trillion to achieve the target.
This followed last Wednesday’s approval of the reviewed National Integrated Infrastructure Master Plan (NIIMP) 2020-2043 by the meeting of Federal Executive Council, FEC, presided over by President Muhammadu Buhari.
Vice President Yemi Osinbajo confirmed this much at the opening of a two-day retreat of the National Council on Privatisation in Abuja last Thursday.
He spoke on funding infrastructure at the retreat to review Bureau of Public Enterprises, BPE, Act.
He had cited statistics from NIIMP and the Economic Recovery and Growth Plan (ERGP) 2017-2020 to buttress his point that Nigeria would require at least $2,3 trillion over the next 30 years to bridge the infrastructure deficit in the country.
The FEC had on Wednesday approved for implementation a revised NIIMP, which in the short term (2021 to 2025) envisages $150 billion annual financing requirement from both the public and private sectors.
According to government: “For these five years, the estimated annual expenditure for Vital Registration and Security is $3 billion; social infrastructure is $7.5 billion; ICT is $16.5 billion; Housing and Regional Development is $16.5 billion; Agriculture, Water and Mining is $19.5 billion; Transport is $37.5 billion; and Energy is $49.5 billion.”
According to government, the share of the private sector in total investment requirement was higher at 56 per cent while the public sector (Federal and States) accounted for the remaining 44 per cent.
Financing sources for public sector infrastructure investments have been identified to include government budgets (federal and states); public debt/government borrowing; other public sources (e.g., InfraCo, Sovereign Wealth Fund and Pension Fund); and, Public-Private Partnerships (PPPs).
It is expected, as learnt, that that the revised NIIMP would provide such benefits as job creation; enhanced economic growth and development; enabling environment for ease of doing business; investors’ guide; positive externalities; and, efficient allocation of resources.
And, in order to ensure efficient and effective implementation, the reviewed NIIMP, as confirmed, has recommended the setting up of National Council on Infrastructure (NaCoInfra) to provide policy direction on infrastructure-related matters.
It is expected that members of the NaCoInfra will comprise federal Ministries, Departments and Agencies (MDAs), Organised Private Sector, National Assembly, professional bodies and six governors-one from each geo-political zone of the country under the chair of the Vice President, Professor Yemi Osinbajo.
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