As part of its infrastructure masterplan, the Federal Government is planning to use the over N10 trillion pension funds to fix the infrastructure deficit.
Speaking during the 26th Nigerian Economic Summit Group (NESG) in Abuja, Minister of Finance Budget and National Planning, Mrs Zainab Shamsuna Ahmed, said that the Nigeria Infrastructure masterplan has been costed, adding that it would require up to $10 billion to bridge the infrastructure deficit.
“It has also been analysed and categorised into investment that government needs to make on its own—investment that government needs to make in partnership with the private sector—-an investment that the private sector itself can offtake. We are currently in the process of reviewing it to be able to input the requirements of infrastructure into the Nigeria Agenda 2050 and the Nigerian Development Plan we are now working on. The government has just taken a decision to set up an infrastructure company (Infraco). We are trying to encourage idle funds. Funds from pension for example, to be put into a vehicle that will enable Nigerians and the pension funds invest in a long term basis into structured investment vehicles. This will not be driven by government. It will be private-sector driven. It could be a combination of long- term bonds or a direct investment into specific chosen projects. Also, we are working with sub-national governments in building infrastructure using funds from the private sector.