*As Dangote pledges to strengthen PPP project financing
Experts in the nation’s infrastructure space, yesterday, said Nigeria needs an estimated $80billion in financial commitment annually over 10 years to fix its infrastructure deficit.
They spoke at the national workshop of the Association of Business Editors in Nigeria (ABEN), themed: “Infrastructure Financing as Pathway to Sustainable Economic Development.”
Stakeholders in the Dangote Group, and the Lagos State Government among others, charged government at all levels to partner with the private sector to fix the ailing infrastructure by aiding business growth and economic development.
Speaking on the theme, a former Acting Managing Director/CEO, Bank of Industry (BoI), Dr Waheed Olagunju, argued that there cannot be meaningful development without investment in infrastructure, to jump-start activities in all sectors of the economy
He said: “Nigeria needs $80billion every year over the next 10 years to finance its infrastructure gap. And to address this, the government must partner with the private sector to provide funding for key infrastructure projects.”
Infrastructure takes longer time between 20 and 30 years, hence, structures must be built around continuity of infrastructural projects irrespective of who is in government.
Olagunju, who was also the chairman of the occasion, noted that given how critical transportation infrastructure such as road, rail maritime and aviation are, the Federal Government through the National Development Plan (2021-2025), expects the industry to generate 15% of such funds amounting to N52trillion of the over N300 trillion revenue target into the economy.
This is even as it expects 85% of resources to come from the private sector through Public Private Partnerships (PPP).
While making a case for inclusive growth and sustainable development, the former BoI boss said good ratings are critical to making Nigeria an investment hub.
He urged the government to have an internationally acceptable standard and structure that financiers would be interested in to fund developmental projects in the country.
“Nigeria must be an investment hub for investors. Let’s continue to market Nigeria as an investment destination, ignore negative reporting that is negatively affecting the ratings of Nigeria as a country.
“Also, the Rule of law must be right to build confidence in the system. Our laws and Constitution should not be cumbersome; it should be adaptive and avoid too many bureaucracies that could distract investments.
“Infrastructure takes longer time between 20 and 30 years, hence, structures must be built around continuity of infrastructural projects irrespective of who is in government,” he said.
In a presentation at the event, the Dangote Group, a co-sponsor of the workshop, promised to play more critical roles in the years ahead toward supporting PPP to improve Nigeria’s infrastructure space.
Infrastructure is huge, so, it’s beyond the federal government alone, states and local governments must equally play their parts while the private sector provides the funding.
Funding infrastructure
In a keynote address, Lagos State Commissioner for Economic Planning and Budget, Sam Egube, restated the need to raise capital from all credible sources to fix infrastructure.
He also urged that the fiscal financing structure meets international standards such that the private sector can finance projects without any fear of losing their money.
Egube said Lagos has tried this model and found it to be working, adding that a lot of capital projects are on-going in the state have more private sector funding input, leading credence to the quality of structures the government has, to attract financiers for its projects.
He said: “To get funding from the private sector both local and international, for your infrastructure projects, your ratings must be right. Pension funds are also another alternative to finance infrastructure development but you must get your structure right to drive the needed funding.
“Infrastructure is huge, so, it’s beyond the federal government alone, states and local governments must equally play their parts while the private sector provides the funding.
“However, the private sector is key in all these projects, hence; the government must embrace PPP arrangements to address the infrastructure deficit in the country.”
“The Lekki deep seaport is three times bigger than Apapa port and what that does is to improve turn-around time, attracts Investment and business opportunities to the Lekki axis and this is how development works. The rail system is targeted at transporting 32million people monthly.
“The 4th mainland bridge project will soon be awarded by December. We target to lay 6,000km of fibre cable across the state, the first phase of 3,000km is almost concluded and what that does is increase internet connectivity and reduce the cost of data.”
Also, the Managing Director, Sundry Foods Limited, Ebele Onunwa, who was represented by the company’s Regional Manager, Jubril Shoaga, called on the government to address the challenge of multiple taxes currently facing Small and Medium Enterprises (SMEs) across the country.
Earlier, ABEN Chairman, Omoh Gabriel, said the level of infrastructure deficit in the country is a cause for concern, and called for more discussions around this critical problem.
He noted that every developed economy invested heavily in infrastructure, adding that Nigeria’s case should not be an exemption.
To this end, he called for strong collaboration between the public and private sectors to fix this challenge.
Also at the event, goodwill messages from the Dangote Group, UBA, and Access Bank, among other sponsors of the annual conference.
