Nigeria Needs $2.3 Trillion to Resolve Infrastructure Challenges

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has said Nigeria will need $2.3 trillion over the next 20 years to resolve its infrastructure challenges.

Speaking at the Integrated Infrastructural Research for Development conference held in Abuja, Zainab stated that the private sector has a critical role to play in the infrastructure modernisation of Nigeria. 

She said, “In the national development plan, we have cost the investment that is required; $2.3trn with a private sector contribution of 86 per cent anticipated between 2021 to 2025.

The minister further stated that the revised National Integrated Infrastructure Master Plan was meant to fund key sectors in the economy such as power, rail, roads, housing and agriculture through innovative partnerships with the private sector. 

Citing an example, she said the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme launched in 2019 leveraged private sector expertise to construct, repair and maintain critical federal roads.

“We started the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme launched in 2019 to leverage private sector capital via tax credits, and provide private sector expertise to construct, repair and maintain critical road infrastructure in key economic growth corridors and industrial clusters in Nigeria.” The minister said.

It will be recalled that in August 2022, Vice President, Yemi Osinbajo also positioned the same thing. 

The vice president stated that Nigeria faced an infrastructure deficit of about $2.3 trillion which it will need the help of the private sector to address. 

Osinbajo noted that the collaboration between the federal government and the private sector would not only ensure effective coordination of the infrastructure development across the nation but would also bridge the nation’s infrastructure gaps.

Meanwhile, Investors King learnt that more than that the federal government has positioned more than N6 trillion as relief in the 2023 budget. This has however created misgivings among the senators who claimed the tax waiver could be counterproductive amid the budget deficit of more than N10 trillion.