Zainab Ahmed, the minister of finance, budget and national
planning, says the federal government will fund public infrastructures through
other viable options aside from budgetary allocations.
Ahmed noted that one of the options is the adoption of
public-private partnership (PPP).
A PPP allows for a large-scale government projects, such as
roads, bridges, or hospitals, to be completed with private funding.
Speaking during a webinar on financing PPP to boost
infrastructural development, Zainab said a review of the federal budgets in the
past few years shows that the resources are insufficient to bridge the
country’s infrastructure deficit.
She noted that the country would need the sum of $3 trillion
over the next 30 years to bridge the infrastructure deficit.
“Notwithstanding this, we have not been able to fully unlock
the potentially huge benefits afforded by PPPs, due to the absence of a comprehensive
PPP framework setting out institutional responsibilities,” she was quoted by
Yunusa Abdullahi, her media aide.
“Which would provide investors with the necessary comfort to
commit capital towards infrastructure development.
“As you may be aware, there are some other initiatives being
taken by the government in the PPPs space such as the ongoing review of the
guidelines on viability gap funding, and management of contingent liability
that have both reached advanced stages.
“In addition, from 2021/2022 budget cycle, all
infrastructure projects must be screened for PPP suitability and compliance
with the national integrated infrastructure master plan by the federal ministry
of finance budget and national planning and BPE before inclusion in the
national budget and subsequent procurement.
“Are to ensure that PPP takes a center stage in the
procurement of infrastructure in Nigeria. The government is ready and willing
to dialogue and incorporate valuable suggestions from stakeholders with a view
to further strengthening Nigeria’s PPP framework.
“We are, therefore, counting on the support and cooperation
of our public and private sectors partners, our local and foreign partners,
financial institutions and other important key stakeholders towards the
successful implementation of the government’s new PPP policy directive.”
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