25 November 2013, Lagos – The N464 trillion needed for infrastructures over the the next five years in the country can’t be provided by banks alone, said Chibundu Edozie, Group Deputy Managing Director, BGL Plc.
He said that the Nigerian banks don’t have the capacity to fund the infrastructure needed for Nigeria as government requires a mix financing options to meet the infrastructural gap.
Speaking at the Chartered Institute of Stockbrokers (CIS) 17TH Annual Conference , he stated “N15 trillion deposits is in the banks and about N3.7 trillion in pension fund, but all these amount is not sufficient to provide the needed fund for infrastructure.” He harps on the low level of saving in the country, saying “Savings are very low in Nigeria. We don’t have reasonable saving culture; so the alternative is to seek capital market for additional funding.”
Mr. Tola Mobolurin, Chairman, Capital Bancorp Plc in his own remark said “We need private sector involvement in sectoral reforms in order to have overall effect on the entire economy. There should be holistic regulatory requirements if Nigeria must be among top economies.”
He further warned that the people should not be stampeded into Pubic Private Partnership (PPP) especially in some infrastructural projects, adding “The build and transfer system of the PPP has not benefitted the operators and should be carefully reviewed.”
Mobolurin, advised that the government to bring down the cost of public expenditure, saying, “We need to bring down the cost of public expenditure. Government cannot fund all the projects with budgetary allocation. So the Nigerian capital market instrument should be used to fund some of the needed infrastructure in the country.”
Meanwhile, the CIS President, Alhaji Olushekun Ariyo also urged the Federal Government to make use of the Nigerian capital market to fund the infrastructure requirement of the country.
Ariyo, who gave the advice, during the 17th Stockbrokers Annual Conference, said the allocation from national budget is no longer enough to provide the needed infrastructure that would boost productivity and general welfare of the people.
*Peter Egwuatu, Vanguard