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BUSINESS & ECONOMYNEWSLETTER

FG Requires $3trillion to Fund Infrastructure Projects

The Minister of Budget and National Planning, Senator Udoma Udo Udoma, at the weekend in Abuja, said about $3.05 trillion will be required over the next 30 years to implement the National Integrated Infrastructure Master Plan, NIIMP.

Under the plan, which will be executed in collaboration with federal and state governments and the private sector, the public sector will handle 52 per cent of the project, the private sector will underwrite the balance in the first five years.

Speaking, while receiving the report of a Pre-Summit Workshop from the Infrastructure Private-Public Partnership Summit Group (PPPSG),  Udoma described the NIIMP as a blueprint for accelerated infrastructure development in the next 30 years (2014 -2043), adding that it seeks to raise the stock of infrastructure from 20 to 25 per cent of the gross domestic product (GDP) to at least 70 per cent by 2043.

The PPP SG is charged with charting a course for the PPP funding in some critical sectors as well as establish a private sector-led Community of Practice to work with the government on the implementation of infrastructure roadmaps.

Investments in the NIIMP are geared towards meeting infrastructure requirements of the major sectors of the economy including energy, transport, ICT, agriculture, water and mining, housing, social infrastructure, security and vital registration.

He explained that apart from being a robust framework for infrastructure development, the NIIMP will also serve as investors’ guide, enhance economic growth and create job opportunities among other benefits.

The plan outlines a financing plan for the public sector component of the investment requirement with four major options – public budgets, loans, pension funds and sovereign wealth fund as well as public- private partnership (PPP)

He reiterated the importance of infrastructure in turning the economy of the country around and pointed out that in his resolve to revamp the economy, President Muhammadu Buhari is determined to attract as much private sector investment as possible to enable a quick turnaround.

 

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