Federal Government votes $2.3tr for infrastructure

For the 23 years the plan will last (2020-2043), $2.3 trillion will be required, translating to about $150 billion annually.

Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, announced this yesterday in Abuja at a town hall meeting with the theme: Nigeria’s Infrastructure Revolution: Road To a New Future, organised by Business Hallmark Public Policy Forum.

Mustapha said the Muhammadu Buhari administration had entered into a public, private partnership (PPP) with a premier finance entity to provide an initial seed capital of N1 trillion and that it envisages that it will grow over time to N6 trillion.

He said: “The economic disruption caused from 2016 and COVID-19 as well as challenges of previous reforms compelled the Federal Government to revise the 23-year 2020-2043 National Integrated Infrastructure Master Plan that identifies critical enablers which consisted micro economic framework and realistic infrastructure investment plan. 

“For the 23-year period, $2.3 trillion will be required, translating to about $150 billion annually. The private sector and other partners have to provide 56 per cent, while the Federal and state governments provide 44 per cent of the share of the investment.

“The Federal Government has made important strides towards providing much of our infrastructure. In recent years, it has conducted several infrastructural reforms.

“Specifically, we are extending and upgrading the nation’s railway network and introducing more locomotive couches. The Port sector has been converted to landlocked models and terminals.  “Similarly, the public private partnership style infrastructure company with an initial seed capital of N1 trillion envisages to grow over time to N6 trillion in excess and capital has been established and will soon commence operation with In Franco.

“In Franco is one of the premier finance entities in Africa and would be wholly dedicated to Nigeria’s infrastructure development. The reduction in Nigeria’s infrastructural gap will also give the country a competitive advantage under the newly signed Africa Free Continental Area Trade Agreement.”