Vice President Yemi Osinbajo has disclosed that Nigeria is in need of $2.3tn over the next 30 years to address the infrastructural deficit confronting the country.
Osinbajo who made the disclosure in a statement on Thursday, Mach 18, said since government’s resources were completely insufficient, the only way to bridge the gap was by Public-Private Partnership arrangement in one form or the other.
The statement that was released by Vice President’s Senior Special Assistant on Media and Publicity, Laolu Akande, titled ‘How to access local, global funds to develop Nigeria’s infrastructure, by Osinbajo’.
The statement read: “Nigeria will require at least $2.3tn over the next 30 years to bridge this gap. The review of budgetary allocation for capital expenditure even over the past decade will show that government resources are completely insufficient for this purpose.
“There is a large pool of investable funds from both local and international investors for the development and maintenance of infrastructure. But these are only accessible where there is a business case to be made for developing public infrastructure.
“So, for both institutional and individual investors, there is far more comfort with lending or with equity participation where a private sector entity partners with a public authority owner of the infrastructure.
“This way the public partner can play its natural role of a regulator (regulation and policy), leaving business to the private sector whose reason for being is business. So, for investors, PPP presents the best of both worlds.”
While urging participants drawn from the private and public sectors at the retreat to remain focused on the objectives of the meeting, he maintained that developing a framework that would be attractive to investors should be topmost in their deliberations.
In his opening remarks, the Director-General of BPE, Alex Okoh, said the current economic environment required the government to adopt innovative ways of attracting resources for infrastructure development.
He said an amendment of the BPE Act would among other things expand private sector participation in the Nigerian economy as well as attract more foreign capital to different sectors of the economy.