The National Economic Council (NEC) has authorised the initial transfer of $650 million to the Nigeria Sovereign Investment Authority (NSIA) as seed funding for Presidential Infrastructure Development Fund (PIDF). The money is to be transferred from the Nigeria Liquefied Natural Gas (NLNG) Dividend Account and managed by the NSIA on behalf of the federal government.
The authorisation by NEC on Thursday followed an approval by President Buhari for the establishment of PIDF, which is to be managed by the NSIA, and invested specifically in critical road and power projects across the country.
The PIDF will secure counterpart funds required for projects being co-developed with China Exim and China Development Banks, and mobilize any additional funding required from development partners.
“This initiative aims to eliminate the risks of project funding, cost variation and completion that have plagued the development of the nation’s critical infrastructure assets — such as the 2nd Niger Bridge, Lagos to Ibadan Expressway, East—West Road, Abuja to Kano Road, Mambilla Hydroelectric Power — over the last few decades,”
according to a Presidency statement mailed through the NSIA on Friday.
“This commitment by the President and NEC, allows all State Governments to own an economic interest in the project companies that will be professionally developed and managed by the NSIA,” the Presidency said, while optimistic that “the investments will yield returns, which will diversify revenues to States, improve the fiscal sustainability profile of the federation and ensure Nigerians benefit from modernised Infrastructure for decades to come.”
