In line with the Renewed Hope Agenda of President Tinubu’s led administration, On Monday, he gave approval for the Infrastructure Development Fund in order to service the country’s $25bn per annum Infrastructure funding gap.
Mohammed Idris, the Minister of Information and National Orientation, revealed this on Monday after the Federal Executive Council meeting at the presidential villa, Abuja.
Idris said, the fund became necessary given Nigeria’s current infrastructure gap, requiring $878bn to bridge between 2016 and 2040.
“Now, there is a study that was made that said Nigeria will require about $878bn between 2016 and 2040 to bridge its infrastructural deficit.
“What that means is that from 2016 to 2040, about $25bn will be required annually to bridge that infrastructure deficit.
“Therefore, Mr President, in his wisdom and with the approval of the Federal Executive Council, today, approved the setting up of the Renewed Hope Infrastructure Development Fund to be domiciled in the Presidency,” he announced.
Also speaking, Zacch Adedeji, the Chairman of the Federal Inland Revenue Service, said the fund would focus on road, rail, agriculture, ports and aviation.
He stressed that the fund will be launched after Abubakar Bagudu, the Minister of Budget and Economic Planning, prepares a supplementary budget to accommodate the new spending.
“Our key strategic focus, for now, will be on road infrastructure, rail infrastructure, agricultural infrastructure, port revitalisation and aviation enhancement.
“We believe this vehicle will be a major outside-the-box solution to our infrastructure gap. And we believe, hopefully, by the special grace of Almighty God, that Mr President will launch this fund after the Minister of Budget and Economic Planning has done the supplementary budget to take care of all these critical projects.
“So, we look forward to the next few months when the fund will be launched. And then it will be domiciled in the Presidency,” said Adedeji.
Also, the Presidency had listed four objectives of the RHIDF
According to Ajuri Ngelale, the Special Adviser to the President on Media and Publicity,he noted that the fund would be invested in critical national projects that would, promote growth, enhance local value-addition, create employment opportunities, and stimulate technological innovation and exports.
The statement titled ‘President Tinubu approves renewed hope infrastructure development fund’, noted, “Establish an innovative infrastructure investment vehicle to attract and consolidate capital, serving as a dynamic driver for economic advancement.
“Execute strategic and meticulously chosen national infrastructure projects across several key sectors, including road, rail, agriculture (irrigation, storage, logistics & cold chain), ports, and aviation, among others.
“Efficiently utilise and aggregate accessible low-interest loans such as concessionary loans and Eurobonds, supplemented by the procurement of other favourable financing options, in addition to budgetary allocations.”
“It is also designed to “guarantee Nigeria secures the most advantageous arrangements for financing, construction, and subsequently, operation and maintenance of the identified projects, ensuring optimal long-term outcomes for the nation”.
The Presidency said the emphasis would be on the development of robust agricultural infrastructure networks and agricultural infrastructure and food security.
“This encompasses the establishment of national food storage facilities, integrated irrigation systems, ranching for animal husbandry, and the enhancement of agricultural logistics and distribution,” it noted.
