To close Nigeria’s enormous infrastructure gap, the Federal Government aims to have 70% of the country’s capital stock and spend $150 billion annually.
It admitted that the $150 billion annual target necessary for the National Integrated Infrastructure Master Plan was not achievable with the current budgetary allocation available to maintain and improve the country’s infrastructure (NIIMP).
Prince Clem Agba, Minister of State for Budget and National Planning, said this at the Thursday launch and presentation of the revised NIIMP in Abuja.
The Reviewed National Integrated Infrastructure Master Plan and the recently approved National Development Plan (2021-2025), according to Agba, projected that the nation’s current infrastructure stock would represent between 30 and 35 percent of GDP in 2020, which was far from the desired 70 percent.
He said there was no doubt that the estimated resource requirement of $2.3 trillion for the National Integrated Infrastructure Master Plan implementation was enormous and tasking, stressing the need for the private sector to get involved.
“It is apparent, therefore, that the Federal Government alone cannot provide all the needed resources, more so as government revenues from the oil and gas sector are vulnerable to shocks in the international markets.
“Besides investments by sub-national governments, the private sector is expected to play an increasing role either directly or in collaboration with the government through the Public-Private Partnership (PPP) with Governments providing a supportive environment with stable and transparent policies, rules and regulations required for a robust PPP investment.
“The FG shall 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 infrastructure delivery,” he noted.
The reviewed master plan covers the period of 2020 to 2043. The master plan became necessary because Nigeria lacked adequate infrastructure from power to roads to bolster the economy.
