Tinubu Approves Creation of Renewed Hope Infrastructure Fund to Bridge Infrastructure Gap
FEC: $35bn required for funding annually Okays N1.267trn for 28 roads, bridges
President Bola Ahmed Tinubu has approved the establishment of new Infrastructure Development Fund to facilitate effective infrastructure development across the nation's critical sectors, including agriculture, transportation, ports, aviation, energy, healthcare, and education.
Tagged, “Renewed Hope Infrastructure Fund,” the fund is expected to invest in critical national projects, which, according to the presidency, will among other things, promote growth; enhance local value-addition, create employment opportunities, and stimulate technological innovation and exports.
Presidential spokesperson, Ajuri Ngelale, in a release issued yesterday, listed the objectives of the fund to include, “Establishing 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 and 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.
“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 also said the fund will identify appropriate approaches in its investment strategy, such as direct project financing through budgetary allocations and SPVs; co-financing (public-private partnerships) with key institutions, multilateral development institutions, as well as equity investments.
On agricultural infrastructure and food security, the statement explained that the emphasis was on the development of robust agricultural infrastructure networks.
“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 stated.
According to the presidency, on ports revitalisation, the strategic thrust revolves around the rejuvenation of port facilities and associated infrastructure to streamline operations and enhance the ease of doing business.
“By modernising port facilities and implementing advanced monitoring systems, the goal is to optimise efficiency, attract investments, and bolster Nigeria's position as a regional trade hub,” the presidency affirmed.
It said on aviation enhancement, the focus was on the revitalisation and modernisation of major airports nationwide.
“Through targeted investments and infrastructure upgrades, major airports will undergo comprehensive refurbishment, including improvement in terminal facilities, runway expansions, and the implementation of cutting-edge technologies to enhance safety and operational efficiency,” it said.
On road infrastructure, some of the strategic projects to receive attention, according to the release, include the Lagos-Calabar Coastal Road, the Sokoto-Badagry Road, among other key road projects across the nation. This is to enhance connectivity, facilitate transport efficiency, and stimulate economic growth across regions, the statement said.
On rail infrastructure, it said LagosKano and Eastern rail lines were among the projects to be prioritised by the fund, adding that the aim is to ensure the modernisation of transportation networks, fostering interconnectivity between key urban centres, and facilitating the movement of goods and people with greater speed and reliability.
Tinubu also approved that the Presidential Infrastructure Development Fund (PIDF) be absorbed into the new Renewed Hope Infrastructure Development Fund (RHIDF), “which will successfully eliminate identified bureaucratic inefficiencies, enhance domestic and external counterpart funding opportunities, and expedite project delivery timelines for the benefit of the Nigerian people.”
The statement added, “As the major infrastructural enabler of his global push for foreign direct investment across sectors, the president has further directed that the projects funded under the Renewed Hope Infrastructure Development Fund (RHIDF) reflect an equitable national spread, such that every Nigerian is impacted by the initiatives of his administration in the most qualitative fashion possible.”
Shedding more light on the fund after the regular meeting of the Federal Executive Council (FEC), Minister of Information and National Orientation, Mohammed Idris, said Tinubu was determined to ensure that the infrastructure deficit across the country was bridged.
“We're all aware that Nigeria is having challenges in terms of its infrastructure,” Idris stated, recalling a study which concluded that Nigeria will require about $878 billion between 2016 and 2040 to bridge gap.
He said that comes down to about $35 billion annually needed to bridge the infrastructure gap in the country.
According to Idris, “Now, what that means is that from 2016, going to 2024, about $25 billion 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.
The fund will be domiciled in the presidency."
Giving more details, Chairman, Federal Inland Revenue Service (FIRS), Zaach Adedeji, explained to newsmen, “What we've observed is that we'll need national infrastructure backbone and to get this done, because if you look at the analysis of the Integrated Infrastructure Masterplan that was commissioned in 2020, we will require $895 billion in the next 10 years to actually bridge the gap of infrastructure problem that we have.
“So, for us to do that it requires that we think really outside the box and compare what has worked elsewhere, whether within our country or in other advanced countries that we are actually proud to be associated with. In coming up with this, in the wisdom of Mr. President and magnanimity, so to say, of the Council, that they've approved the establishment of the Renewed Hope Infrastructure Fund as the catalyst to actually drive our infrastructure agenda.