President Muhammadu Buhari has assured investors that his
government is doing what is necessary to make Nigeria a viable investment
destination for them.
Buhari said one of the ways his government has done this, is
by making the Transmission Company of Nigeria (TCN) financially viable to
provide more electricity for the country and for investors.
The president, who was represented by Ibrahim Gambari, his
chief of staff, said Nigeria needs N298.3 trillion from private sector players
to achieve the objectives set out in the National development plan.
“As you may be aware, Nigeria’s National Development Plan (2021 – 2025) was formulated against the backdrop of several subsisting development challenges in the country and the need to tackle them within the framework of medium and long-term plans,” he said.
“This
all-encompassing plan, aims to generate 21 million full-time jobs and lift 35
million people out of poverty by 2025, thus setting the stage for achieving the
government’s commitment of lifting 100 million Nigerians out of poverty in 10
years.
“To attain the objectives of the National Development Plan
(2021 – 2025), we estimate that we would require an investment commitment of about
N348 trillion.
“Government capital expenditure during the period will be
N49.7 trillion (14.3 percent) while the balance of N298.3 trillion (85.7
percent) is expected from the Private Sector. Of the 14.3 percent government
contribution, FGN capital expenditure will be N29.6 trillion (8.5 percent)
while the Sub-National Governments’ capital expenditure is estimated to be
about N20.1 trillion (5.8 percent).
“The successful
implementation of this Plan will therefore, be heavily dependent on strong
partnerships between the private and public sector, both within and with
Development Partners outside Nigeria.”
TCN CAN NOW INVEST IN
INFRASTRUCTURE
Speaking about the challenge of electricity, Buhari said the
Presidential Power Initiative will provide electricity for 40 million people in
the country.
“The first phase of the Presidential Power Initiative will
provide over 40 million people with more reliable electricity supply, create
11,000 direct and indirect jobs for Nigerians,” he added.
“This will be from power system engineers to electricians
and contractors, and this will in turn improve the standard of living while
providing homes and businesses with constant, reliable, and affordable
electricity supply.
“You may also wish to
note that at the commencement of this Administration, N200 billion was paid for
stranded power to service existing liabilities. Contract terms in Power
Purchase Agreements were changed from “Take or Pay” to “Take and Pay.”
“Similarly, the Distribution Companies were made to use
banks for bill collections – prior to this, Transmission Company of Nigeria was
getting only 50% of proceeds. Now, TCN is financially viable and can invest in
its own infrastructure.”
Buhari said his administration also provided sovereign
guarantees for vital infrastructure projects in the country.
The president added that “the Federal Government of Nigeria
has always recognized security as another critical element in the flow of
investment and overall economic and infrastructural development anywhere,”
committing to solve Nigeria’s security challenges.
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