Infrastructure: FG targets $140bn from pension fund, others

In a bid to ensure a successful implementation of the National Integrated Infrastructure Master Plan, the Federal Government has identified four options, including the pension fund, to finance some priority projects contained in the plan in the next five years.

The funding options are contained in the NIIMP document, a copy of which was obtained by our correspondent in Abuja on Friday.

A total of $140bn will be generated for the project through the four funding sources, according to the document.

The report showed the bulk of the funds would come from government loans, which could finance up to $76bn; the government budget would be expected to provide $31bn of the infrastructure projects.

The document also indicated that other government-controlled sources such as the Sovereign Wealth Fund or pension fund would offer $13bn of the financing while the Public Private Partnerships would be developed to offer between $15bn and $20bn from the private sector.

The NIIMP, which is a comprehensive infrastructure development plan, is designed to bridge the current infrastructure gap in the country and is expected to cover a 30-year period from 2014 to 2043, with a projected cost of $2.9tn.

The priority projects to be carried out within the next five years, according to the document, are energy which is estimated to gulp $60bn; transport, $51bn; and the Information and Communications Technology, $22bn.

These sectors, it stated, were accorded priority due to their current level of underinvestment, noting that within the next four years, the investment would be expected to grow at an annual rate of 50 per cent for transport, 32 per cent for social infrastructure and 23 per cent for housing.

It said, “Given the anticipated increased role of the private sector in infrastructure development, the NIIMP identifies potential sources of finance for required infrastructural investments and enablers.

“Out of the total investments requirement of about $3tn over the next 30 years, $166bn will be required during 2014-2018. “The share of the public sector (federal and states) is 52 per cent while the private sector accounts for the remaining 48 per cent.”

Already, the Minister of National Planning, Dr. Abubakar Sulaiman, had last week inaugurated an inter-ministerial committee for the formal launch of the plan by President Goodluck Jonathan within the next few weeks.

The minister expressed optimism that the NIIMP, if effectively implemented, would reduce unemployment and increase wealth generation for Nigerians.

He described the NIIMP as crucial for the current efforts of the government to radically transform the country for improved socio-economic well being of the people.

He said, “The presidential launch of the NIIMP will lay a credible foundation for the maiden edition of the nation’s annual summit on infrastructure and investment driving pursuit.

“The President’s objective is clear, unambiguous and transparently patriotic. The first five years of implementing this plan will position us to take maximum advantage of what our huge natural and human resources promise.”

Source: Punch Newspaper.