FG aims for 70% of the share capital, 150 billion dollars per year

The federal government is targeting 70% equity capital and $150 billion a year to fill Nigeria’s gaping infrastructure gap. But he acknowledged that the current annual budget allocation available to repair and upgrade the country’s infrastructure was too small to meet the $150 billion target required annually for the National Integrated Infrastructure Master Plan.

This was revealed by the Minister of State for Budget and National Planning, Prince Clem Agba during the official launch and presentation of the revised NIIMP on Thursday in Abuja.

According to the Agba, the revised National Integrated Infrastructure Master Plan and the newly approved National Development Plan (2021-2025) estimated the current country’s infrastructure stock at 30-35% of GDP in 2020, but this was far from the estimated target of 70% expected in 2043.

He said there was no doubt that the estimated resource requirements of $2.3 trillion for the implementation of the National Integrated Infrastructure Master Plan were huge and demanding, underscoring the need for the private sector to step up. imply.

“It is therefore clear that the federal government alone cannot provide all the necessary resources, especially since public revenues from the oil and gas sector are vulnerable to shocks in international markets.

“In addition to investments by sub-national governments, the private sector is expected to play an increasing role, either directly or in collaboration with government through public-private partnership (PPP), with governments providing an enabling environment with policies, rules and stable and transparent regulations required for sound PPP investment The FG will also 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 the provision of infrastructure,” he noted.

The revised master plan covers the period from 2020 to 2043. The master plan became necessary because Nigeria lacked adequate infrastructure, from electricity to roads, to sustain the economy.

According to the minister, the government of Major General Muhammadu Buhari (Ret’d), in its determination to address the country’s infrastructure gap in the wake of the COVID-19 pandemic, has launched a $15 trillion infrastructure company. naira and also signed Executive Order 7, which had informed policy framework and created ample space for public-private partnership (PPP) in infrastructure development.

Sallie R. Loera