President Tinubu Greenlights New Infrastructure Fund to Tackle Nigeria’s $25 Billion Gap
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President Bola Tinubu has given the green light to the Renewed Hope Infrastructure Development Fund, aimed at closing Nigeria’s significant infrastructure funding gap, which stands at $25 billion per year. Mohammed Idris, the Minister of Information and National Orientation, shared this development with journalists following a Federal Executive Council meeting in Abuja on Monday.
The initiative, to be overseen by the Presidency, addresses Nigeria’s pressing need for infrastructure development, with an estimated $878 billion required between 2016 and 2040 to bridge existing deficits.
Zacch Adedeji, Chairman of the Federal Inland Revenue Service, provided further insight, stating that the fund will prioritize investments in road, rail, agriculture, ports, and aviation infrastructure. However, its launch awaits the preparation of a supplementary budget by the Minister of Budget and Economic Planning, Abubakar Bagudu, to accommodate the new spending.
The Presidency outlined four key objectives of the RHIDF. These include establishing an innovative investment vehicle to attract capital, executing strategic infrastructure projects to foster growth and employment, efficiently utilizing accessible loans, and ensuring optimal outcomes for the nation in terms of financing and project operation.
Specifically, the fund aims to invest in critical national projects that promote growth, enhance local value addition, create employment, stimulate technological innovation, and bolster exports. It will leverage various financing options, including low-interest loans, concessionary loans, Eurobonds, and equity investments, to secure the most advantageous arrangements for financing, construction, and operation of identified projects.
In the agricultural sector, the focus will be on developing robust infrastructure networks, including food storage facilities, irrigation systems, ranching, and agricultural logistics. Port revitalization efforts will aim to streamline operations, enhance the ease of doing business, and position Nigeria as a regional trade hub through modernizing port facilities and implementing advanced monitoring systems.
The RHIDF represents a significant step towards addressing Nigeria’s infrastructure challenges, signalling a concerted effort by the government to stimulate economic growth and enhance the country’s competitiveness on the global stage.
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