In its effort to achieve increased private sector investment in infrastructure and reduction of inadequate capacity in the Ministries Departments Agencies (MDAs) to package potential bankable infrastructure projects, the Ministry of Budget and National Planning in collaboration with The Infrastructure Bank on Tuesday, organised a One- day workshop in Abuja.
The Minister of Budget and National Planning, Senator Udoma Udo Udoma represented by the Director of Administration in the ministry, Mr. Christ Ezeilo in his opening address, said that bankable projects needs to be prepared and packaged to attract private investment, arguing that it will require time, money and technical know- how.
Senator Udoma said ‘’ It means that MDAs must have officers that posses adequate knowledge and skill sets in different areas of PPP competencies, including feasibility studies, financial restructuring, procurement, contractual agreements, and environmental impact assessment. Currently, there are capacity gaps in the MDAs that hinder Government from deriving maximum benefits from partnerships with the private sector in infrastructure delivery.’’
He added that the National Integrated Infrastructure Master Plan (NIIMP) recognizes the critical role of private sector in the financing and delivery of priority projects estimating an investment requirement of USD 166 billion for the first 5 years, out which 48% of this amount is expected to be provided by the private sector.
Speaking also at the workshop, the Managing Director/ CEO of The Infrastructure Bank (TIB) Mr. Adekunle Oyinloye said that investment in capital infrastructure and public utilities has been recognized as a reliable way to rescue the nation from the current economic recession threatening to arrest the country’s development.
He stated that NIIMP stipulates that Nigeria will need an average of USD 25 billion per annum for the next 5 years to sustain a robust economic growth.
According to Mr Oyinloye, the private sector remains willing to work with the government in strategic ways to fund the infrastructure deficit through adroit transaction structuring that comprehensively address the project risks faced by promoters, as well as assuring the return on, and of, capital invested.