Minister of transport, Mu’azu Jaji Sambo, has promised foreign investors, huge return on investment in Nigeria’s decaying rail, road infrastructure with assurance of a secured environment.
The Minister made the promise while delivering a speech centered on Financing Nigeria’s Transport Infrastructure during which, he gave assessment of his ministry’s achievements.
The Minister, while addressing a consortium of investors, diplomats, high government officials and global audience at the International Economic Partnership Forum in New York, USA, on Thursday insisted that only concerned investors .
Hon. Sambo seized the opportunity to toast investors to partner Nigeria in the development of it’s rail, road and Port Infrastructure.
In his words:“I would like to invite our friends and partners to come on board and take advantage of these ample opportunities with a promising return on investment and a guaranteed and secure environment for investors.”
The Minister, implored investors to take chances to invest in any of the infrastructure of their choice as Government would guarantee security and huge return on their investment.
He restated that, “Infrastructure is vital for the long-term growth and competitiveness of countries worldwide. It is however capital intensive as various National Governments are facing constraints in developing and funding infrastructure projects. Likewise, the Nigerian government is increasingly exploring alternative sources of finance for infrastructure development. There are two broad sources of infrastructure financing:
The minister Noted that,
transport infrastructure can be funded through government or private sector financing while government funding options would include budget funding (Budgetary allocation, enhanced statutory allocation and viability gap funding) and off-budget financing (Special intervention funds, bonds, low-interest concessional loans, financing from aid and donor agencies etc).
He pointed out that,Private Sector financing options would typically include pension funds, long-term commercial bonds, multilateral agencies, export credit finance, private equity, infrastructure funds, PPPs, etc.
“Nigeria’s core infrastructure stock is estimated at 20% to 25% of GDP, for which the National Integrated Infrastructure Master Plan (NIIMP) estimates that about USD35billion is required annually over the next five years to sustain a robust economic growth and USD3Trillion is needed over 30 years”.