The Federal Government says that in order to attain its National Development Plan and improve Nigeria’s economic outlook, it will require N298.3tn capital investment commitment from the private sector.
It says the total investment needed between 2021 and 2025 is N348tn, but only N49.7tn (14.3 per cent) is expected to come from the government while the rest will come from private sector players in the economy.
President Muhammad Buhari disclosed this while speaking at the Nigeria International Economic Partnership Forum held on the margins of the 77th UN General Assembly in New York.
A statement from the Presidency said Buhari, who was represented at the opening session by the Chief of Staff, Prof. Ibrahim Gambari, had noted that important strategies were being adopted to improve infrastructure financing in the country.
According to him, the strategy aimed to identify ways to expand the financing envelope of the Sustainable Development Goals in Nigeria, and improve the nation’s economic and development outlook, such as Nigeria’s National Development Plan (2021 – 2025) and the Presidential Power Initiative.
”To attain the objectives of the National Development Plan (2021 – 2025), we estimate that we would require an investment commitment of about N348tn. Government capital expenditure during the period will be N49.7tn (14.3 percent) while the balance of N298.3tn (85.7 percent) is expected from the Private Sector.
“Of the 14 per cent government contribution, FGN capital expenditure will be N29.6tn (8.5 per cent) while the Sub-National Governments’ capital expenditure is estimated to be about N20.1tn (5.8 per cent).
“The successful implementation of this Plan will, therefore, be heavily dependent on strong partnerships between the private and public sector, both within and with Development Partners outside Nigeria.”
Meanwhile, the Federal Government said that Nigeria’s core infrastructure stock was estimated at between 20 to 25percent of the Gross Domestic Product.
A separate statement quoted the Minister of Transportation, Mu’azu Sambo, to have said this in New York while delivering a paper on ‘Financing Nigeria’s transport infrastructure’ at the Nigeria International Economic Partnership Forum.
Sambo also said that the National Integrated Infrastructure Master Plan estimated that about $35bn was required annually over the next five years to sustain a robust economic growth while $3trn would be needed over 30 years.
“Nigeria’s core infrastructure stock is estimated at 20 per cent to 25 per cent of GDP, for which the NIIMP estimates that about $35bn is required annually over the next five years to sustain a robust economic growth and $3trn is needed over 30 years.”
The minister added that the country was unable to meet its transport needs, noting that Apapa and TinCan ports accounted for about 70 per cent of the nation’s maritime trade.
He stressed that poor maintenance had put enormous strain on the transport infrastructure.
According to the minister, “The transportation sector’s contribution to the national GDP is projected to increase to 5 percent in the next 5 to 10 years.”