The minister of finance, budget and national planning, Zainab Ahmed, says the federal government will fund public infrastructures through other viable options aside from budgetary allocations.
Ahmed noted that one of the options is the adoption of public-private partnership (PPP).
A PPP allows for a large-scale government projects, such as roads, bridges, or hospitals, to be completed with private funding.
Speaking during a webinar on financing PPP to boost infrastructural development, Zainab said a review of the federal budgets in the past few years shows that the resources are insufficient to bridge the country’s infrastructure deficit.
She noted that the country would need the sum of $3 trillion over the next 30 years to bridge the infrastructure deficit.
“Notwithstanding this, we have not been able to fully unlock the potentially huge benefits afforded by PPPs, due to the absence of a comprehensive PPP framework setting out institutional responsibilities,” she was quoted by Yunusa Abdullahi, her media aide.
“Which would provide investors with the necessary comfort to commit capital towards infrastructure development.
“As you may be aware, there are some other initiatives being taken by the government in the PPPs space such as the ongoing review of the guidelines on viability gap funding, and management of contingent liability that have both reached advanced stages.
“In addition, from 2021/2022 budget cycle, all infrastructure projects must be screened for PPP suitability and compliance with the national integrated infrastructure master plan by the federal ministry of finance budget and national planning and BPE before inclusion in the national budget and subsequent procurement.
“Are to ensure that PPP takes a center stage in the procurement of infrastructure in Nigeria. The government is ready and willing to dialogue and incorporate valuable suggestions from stakeholders with a view to further strengthening Nigeria’s PPP framework.
“We are, therefore, counting on the support and cooperation of our public and private sectors partners, our local and foreign partners, financial institutions and other important key stakeholders towards the successful implementation of the government’s new PPP policy directive.”