The Federal government disclosed on Thursday that it would continue with external borrowings and draw downs from the Sovereign Wealth Fund, and 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 Agba explained that 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 insignificant.
He said: “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”.
According to Agba, the Federal government alone cannot provide all the needed resources, 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, 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 continued, 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 further 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 message, the 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 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 is being implemented.