For the successful realization of the objectives of the National Integrated Infrastructure Masterplan (NIIMP), a total sum of $166 billion estimated investment requirement is expected to be made to improve Nigeria’s infrastructure stock.
Making this disclosure in Abuja on Tuesday, Udoma Udo Udoma, Minister of Budget and National Planning, stated that Nigeria’s huge infrastructure deficit is one of the major constraints to socio-economic development adding that the stock of infrastructure in the country is very low when compared to with comparator countries.
“It is estimated to be only 20-25 percent of GDP in 2013, compared to South Africa’s 87 percent. This necessitated the formulation of the (NIIMP 2014-2020), a 30 year plan that aims to increase infrastructure stock to 70 percent of GDP by 2043.”
The Minister made the disclosures while delivering a keynote address at a one day workshop for Federal Ministries, Departments and Agencies on packaging of bankable infrastructure public private partnerships projects.
Udoma who was represented by Eze Ilo, stressed that “NIIMP recognizes the critical role of private sector in the financing and delivery of priority projects. It estimates an investment requirement of $166 billion for the first 5 years, out of which 48 percent of this amount is expected to be provided by the private sector.
“In addition, the public sector is expected to invest up to $10 billion to finance PPP projects during the same period. PPP Financing is one of the reliable options. It reduces financial burden on government and enable it to free up scarce resources to be allocated to other spending priorities.”
The minister lamented that “one of the major challenges to optimizing PPP financing option is inadequate capacity in the MDAs to package potential bankable infrastructure projects. This requires time, money and technical knowhow. “Currently, there are capacity gaps in the MDAs that hinders government from deriving maximum benefits from partnerships with the private sector in infrastructure delivery.”
Speaking at the event, Adekunle AbdulRazaq Oyinloye, the Managing Director of The Infrastructure Bank stated there is absolutely no doubt that the private sector has the ability to mobilise the requisite resources to fund the nation’s infrastructure development.
Oyinloye further stated that as the premier focal point for infrastructure development in the country, the bank is able to bridge the gap between the demand for infrastructure projects across the country.
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