12 January 2015, Abuja – A total investment of $165.5bn would be required within the next five years under the National Integrated Infrastructure Master Plan to address challenges in key sectors of the economy.
Nigeria: Energy, transport, others to gulp $165bn
The NIIMP is Nigeria’s blue print for accelerated infrastructure development that provides the road map for building world class infrastructure that will enhance the quality of life of the people.
Based on the rebased gross Domestic Product figure, the plan estimates that a total investment of about $3tn will be required over the next 30 years to build and maintain the nation’s infrastructure.
The NIIMP document, a copy of which was made available to our correspondent on Monday at an infrastructure workshop in Abuja listed the priority areas to include energy, transport, agriculture, water and mining, social infrastructure and housing.
It said these sectors were accorded priority due to their current relative level of under-investment noting that within the next four years, investment is 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.
Giving a breakdown of the $165.5bn investments, the report said about $60bn would be needed in the energy sector, $51bn in transport, and $22bn in Information and Communications Technology.
Others are agriculture, water and mining which would require $18bn; water and mining $7bn in social infrastructure; while housing and vital registration would consume $5bn and $2.5bn respectively.
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.”
For the public sector, the document explained that four options had been identified to finance the required investment.
The options are government budget which is expected to finance up to $31bn of infrastructure within the next four years; government debt which the report noted could finance up to $76bn.
The document stated that other government-controlled sources such as the Sovereign Wealth Fund or pension funds would provide a further $13bn of financing while Public Private Partnerships would be developed to source for between $15bn and $20bn from the private sector.
The Minister of National Planning, Dr Abubakar Sulaiman while declaring the workshop open expressed optimism that the NIIMP, if effectively implemented would reduce unemployment and increase wealth generation for Nigerians.
– The Punch