President Bola Tinubu on Monday approved the establishment of a Renewed Hope Infrastructure Fund, designed to aggressively address the huge infrastructure deficit in the country.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji disclosed this while briefing journalists after the Federal Executive Council (FEC) at the presidential villa.
He said, an analysis of the of integrated infrastructure master plan commissioned in 2020, show that Nigeria need at least $895billion annually in the next 10 years to address the infrastructure gap in the country.
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Dr. Adedeji who doubles as Special Adviser on Revenue to the President noted that, “The goal is to put a holistic approach how we can sustainably mobilise resources to actually fund the development of the country.
“And what we’ve observed is that we need national infrastructure backbone and to get this done, because if you look at the analysis of integrated infrastructure master plan that was commissioned in 2020, we require $895 billion in the next 10 years to gap the infrastructure problem that we have. “
He explained that the current innovative fund consolidates existing resources to drive economic growth and connectivity across sectors like transport, agriculture, aviation, and education and other sectors for inclusive progress, leaving no community behind.
Special Adviser to the President on Media and Publicity, Ajuri Ngelale in a statement also explained that President Tinubu gave the objectives to include; “Establish an innovative infrastructure investment vehicle to attract and consolidate capital, serving as a dynamic driver for economic advancement.
The presidential aide added that “Execute strategic and meticulously chosen national infrastructure projects across several key sectors, including road, rail, agriculture (irrigation, storage, logistics & cold chain), ports, and aviation, among others.
Other objectives of the fund are to “Efficiently utilize and aggregate accessible low-interest loans such as concessionary loans and Eurobonds, supplemented by the procurement of other favourable financing options, in addition to budgetary allocations.
“Guarantee Nigeria secures the most advantageous arrangements for financing, construction, and subsequently, operation and maintenance of the identified projects, ensuring optimal long-term outcomes for the nation.”
The statement bites that the fund will identify appropriate approaches in its investment strategy, such as direct project financing through budgetary allocations and SPVs; co-financing (public-private partnerships) with key institutions, multilateral development institutions, as well as equity investments.
On agricultural infrastructure and food security, the statement explained that the emphasis is on the development of robust agricultural infrastructure networks.
“This encompasses the establishment of national food storage facilities, integrated irrigation systems, ranching for animal husbandry, and the enhancement of agricultural logistics and distribution,” it stated.
According to the presidency, on ports revitalization, the strategic thrust revolves around the rejuvenation of port facilities and associated infrastructure to streamline operations and enhance the ease of doing business.
