Federal government concedes that it needs $2.3trn to fund its infrastructural deficit

NIGERIA'S federal government has conceded that it needs to find a sum total of $2.3trn to fund its national integrated infrastructural masterplan if it wants to bring public facilities up to scratch.


Reeling from the effects of woeful infrastructure, Nigeria lacks many basic amenities to kickstart its economy including electricity, good roads, a railway network, hospitals, etc. According to the African Development Bank, Nigeria has an annual infrastructural deficit of £100bn but with the country's annual budget being between $30bn and $33bn, funding this problem has proven to be a big problem.


Speaking in Abuja yesterday a town hall meeting titled Nigeria’s Infrastructure Revolution: Road to a New Future, organised by Business Hallmark, the secretary to the federal government Boss Mustapha, said external; funding was needed for the plan. He added that Nigeria's 23-year masterplan (2020-2043) is for the development of infrastructure including roads, railway network and the maritime sector.


Mr Mustapha said: “Conscious of the economic disruption caused by 2016 recession and Covid-19 as well as challenges of previous reforms, the federal government revised the 23 year national integrated infrastructure masterplan that identified critical enablers. For the 23-year period, $2.3tn will be required, translating to about $150bn annually and the private sector and other partners have to provide 56%, while the federal government and state governments will provide 44% of the share of the investment.


“The federal government has made important strides towards providing much of our infrastructure and has, in recent years, conducted several infrastructural reforms. Specifically, we are extending and upgrading the nation’s railway network and introducing more locomotive couches.


“Similarly, a public private partnership style infrastructure company with an initial seed capital of N1tn envisaged to grow over time to N6tn in assets and capital has been established and will soon commence operation. It will be one of the premier finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructural development.


Water resources minister Suleiman Adamu, deplored the water crises in Nigeria saying no community in the country enjoyed water supply always. Works and housing minister Babatunde Fashola, added that the federal government currently has about 895 ongoing contracts in the country.