Vice President, Yemi Osinbajo has made it clear that it would take Nigeria 30years to generate $3 trillion to recover from infrastructure debt.
Osinbajo stated this in a webinar that was organized by the Bureau Of Public Enterprises (BPE) on deepening the Nigerian infrastructure stock through Public-Private Partnership (PPP) on Thursday.
He explained that Nigeria need to recognize the new method of investments for infrastructural developments because counting on public expenses alone is not sustainable.
“It is clear that this deficit can only be made up by private investment. The private sector is 92 per cent of GDP, while the public sector is an ere 8 per cent. So, the realistic solution.
“The fact that only N2.49 trillion was appropriated for capital expenditure in 2020, reflects the importance of deliberate and pragmatic action to boost infrastructural spending.
“It seems to me to be quite clear that the financial outlay and management capability required for infrastructural development and service delivery outstrip the financial and technical resources available to the government.
“In other words, the traditional method of building infrastructure through budgetary allocations is inadequate and set to become harder because of increasingly limited fiscal space,” he said.
The Vice President added that the Federal Government has initiated series of PPP’s to assist Nigeria to meet its infrastructure obligations, and cited the roles of agencies like the PPPs with BPE.
Read Also: Airlines Owe Federal Government $6.99m, N19.364bn in Unremitted Fees, Says Minister.
“The Federal Government has recently issued a circular on the administration of PPP projects in the country too, provide the much-needed clarity.
“The circular re-emphasises that the BPE shall be responsible for the concession of public enterprises and infrastructure already listed in the First and Second Schedules of the Public Enterprises Act.
“The circular equally stipulates that the BPE shall act on behalf of the Federal Government, as the counterparty on all infrastructure projects being developed on a PPP basis,” he said.
Osinbajo revealed that the Infrastructure Concession Regulatory Commission (ICRC) would continue to act as the regulatory agency for PPP transactions, with directives including inspections and monitoring PPP projects.
“It is expected that this new policy direction would provide clarity to stakeholders and foster the improvement of PPP programmes in the country.
“Ministries, Departments and Agencies, as well as the multilateral agencies and our development partners, are urged to support the PPP policy objectives and institutional arrangements already put up by the government.”