Nigeria requires ₦348trn to tackle infrastructure deficit, says ICRC DG
Massive Investment Needed to Address Nigeria’s Infrastructure Challenges
In a significant revelation, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Mr. Michael Ohiani, announced that Nigeria requires ₦348 trillion to address its infrastructure deficit. This statement was made during the Second Quarter 2024 Nigeria Public Private Partnership Network (NPPN) meeting held in Minna, Niger State, under the theme: ‘Using PPPs in Infrastructure Delivery in the States to Ensure National Food Security and Economic Growth.’
A Detailed Breakdown of Required Investments
According to Mr. Ohiani, the Medium-Term Development Plan estimates that over ₦348.1 trillion is needed for infrastructure investment. Out of this amount, the private sector is expected to contribute approximately ₦298.3 trillion, while sub-national governments can provide ₦49.7 trillion. He emphasized the critical role of the private sector in bridging this massive funding gap. The government is exploring various avenues to raise these funds, including borrowing, repatriation of national funds, foreign interventions, and raising more bonds through Sukuk and tax credit schemes. Public-Private Partnerships (PPP), both through solicited and unsolicited proposals, are also pivotal in this financial strategy.
Federal Government’s Commitment to PPPs
In his keynote address, Secretary to the Government of the Federation (SGF), George Akume, highlighted the Federal Government’s commitment to using PPPs as the primary tool for socio-economic development. He noted that embracing PPPs would enhance infrastructure delivery, particularly in the agriculture sector, and address critical challenges such as climate change, dwindling revenue, security issues, and food security concerns.
President Bola Tinubu has already declared a state of emergency on food security, underscoring the need for significant investments to improve food production and security in Nigeria. As part of this commitment, the Federal Executive Council recently approved the implementation of the Green Hope National Agricultural Mechanisation Development Program under a PPP arrangement. This initiative will soon be detailed by the Minister of Agriculture.
Enhancing Collaboration with the Nigerian Air Force
The collaboration between NAMA and the Nigerian Air Force (NAF) has been a cornerstone of Nigeria’s airspace safety and security. NAMA’s Managing Director, Ahmed Umar Farouk, highlighted this partnership’s importance while receiving a delegation from the NAF at the agency’s corporate headquarters in Abuja. Air Vice Marshal Abubakar Abdulkadir, leading the NAF delegation, reiterated the NAF’s enhanced capabilities to secure Nigeria’s airspace with new platforms designed for national defense.
Joint Training Initiatives
Joint training initiatives are being considered to address the shortage of Air Traffic Controllers across the country. The Nigerian Air Force training center in Kaduna, recently accredited by the Nigerian Civil Aviation Authority (NCAA), will train at least 20 NAMA staff annually. This collaboration aims to ensure sustained airspace safety and security in Nigeria.
Historical Context and Future Plans
Between 2010 and 2023, the federal government approved 103 PPP projects worth ₦20 trillion. Currently, there are 95 post-contract PPP projects at different stages of implementation and 152 pre-contract projects at various development and procurement stages. The ICRC has issued 199 Outline Business Compliance Certificates and 116 Full Business Case Compliance Certificates, confirming the viability and bankability of these projects.
Niger State’s Active Engagement in PPPs
Niger State Governor, Mohammed Bago, highlighted the state’s proactive approach to infrastructure development through PPPs. Represented by the Head of Service, Abubakar Salisu, Governor Bago stated that 95% of the ongoing projects in Niger State are PPP-based. The state has actively engaged with private investors, particularly in agricultural development, as a means of bringing prosperity to the people.
“Niger State has actively engaged in an agriculture revolution through PPPs, resulting in 100% successful funding arrangements,” Salisu remarked. The state’s commitment to PPPs exemplifies the model that other states can adopt to alleviate the strain on fiscal spending and allocate resources to other developmental projects.
A Call to Action for State Governments
The SGF urged state governments to structure viable PPP models to facilitate private sector participation in infrastructure delivery. He emphasized that the government alone cannot finance all programs and projects, especially with the shift from oil to non-oil revenue sources. PPPs are presented as a ready infrastructure procurement method to reduce the strain on state fiscal spending, enabling fiscal savings to be allocated to other developmental projects.
