From Adewale Sanyaolu, New York
To improve on its state of infrastructure, the Federal Government plans to spend about N49.7 trillion on capital infrastructure under its National Development Plan (NDP).
President Muhammadu Buhari, stated this at the Nigeria International Economic Partnership Forum held in New York, United States of America, yesterday.
The President who was represented by his Chief of Staff, Prof Ibrahim Gambari, said to attain the objectives of the National Development Plan (2021 – 2025), it estimates that the country would require an investment commitment of about N348 trillion.
Giving a further breakdown of the figure, he said government capital expenditure during the period will be N49.7 trillion (14.3 percent) while the balance of N298.3 trillion (85.7 percent) is expected from the private sector.
Of the 14.3 per cent government contribution, FGN’s capital expenditure will be N29.6 trillion (8.5 percent) while the Sub-National Governments’ capital expenditure is estimated to be about N20.1 trillion (5.8 percent).
He maintained that the successful implementation of this Plan will be heavily dependent on strong partnerships between the private and public sector, both with Development Partners outside Nigeria.
On power, he said the sector is recognised as a major catalyst for Nigeria’s industrialisation.
“To this end, in July, 2021, I launched the 614-kilometre Ajaokuta-Kaduna-Kano gas pipeline project to enhance our energy security.
Our administration also provided the sovereign guarantee for this vital infrastructure project. When completed this project will drive industrialisation across the country.
Furthermore, the first phase of the Presidential Power Initiative will provide over 40 million people with more reliable electricity supply, create 11,000 direct and indirect jobs for Nigerians, from power system engineers to electricians and contractors, which will in turn improve the standard of living while providing homes and businesses with constant, reliable and affordable electricity supply,”.
At the commencement of this administration, he said N200 billion was paid for stranded power to service existing liabilities while contract terms in Power Purchase Agreements were changed from “Take or Pay” to “Take and Pay.”
The President added that the Distribution Companies were made to use banks for bill collections as prior to this, Transmission Company of Nigeria was getting only 50 per cent of proceeds, but that today, TCN is financially viable and can invest in its own infrastructure.