The Lagos State Government has revealed its intention to transfer the management of certain state assets to private investors. The move aims to facilitate increased investment in critical areas of the economy, according to Deputy Governor Obafemi Hamzat. He shared this information during a meeting with the leadership of the Lagos Chamber of Commerce and Industry.
Deputy Governor Hamzat emphasized the significance of the private sector as a major driver of economic growth, asserting that it is the government’s responsibility to create an enabling environment for its success. He acknowledged the state government’s ongoing efforts to attract investors, recognizing that no government can single-handedly address all economic needs.
This announcement aligns with a recent World Bank advisory, urging governments to explore asset recycling to generate funds for developmental projects. The advisory, titled ‘Why countries should implement asset recycling, and where to get good guidance,’ suggests leveraging existing infrastructure for funds and investing the proceeds into new, sustainable projects.
The World Bank emphasizes that asset recycling can address infrastructure investment needs, alleviate finance constraints, and harness private sector efficiencies for improved service delivery. The strategy involves monetizing existing infrastructure assets to fund new greenfield infrastructure, fostering a positive cycle of enhanced services and improved public benefits.
The report highlights India’s National Monetisation Pipeline, aiming to generate $72.8 billion by leasing out public infrastructure assets between 2022 and 2025. As governments worldwide seek substantial infrastructure investments, asset recycling emerges as a key pillar for sustainable financing, leveraging the private sector’s role in infrastructure development.
