Nigeria establishes Presidential Infrastructure Development Fund, approves $650m takeoff grant
Joel Eneogwe is Businessamlive Reporter.
You can contact him on joel.eneogwe@businessamlive.com with stories and commentary.
The Federal Government of Nigeria has approved the establishment of a Presidential Infrastructure Development Fund (PIDF) to be managed by the Nigeria Sovereign Investment Authority (NSIA) for investment in critical road and power projects across the country.
Consequently the National Economic Council (NEC) Thursday authorised the initial transfer of $650 million dollars to the NSIA from the Nigeria Liquefied Natural Gas (NLNG) dividend account, as seed funding for PIDF.
This initiative aims to eliminate the risks of project funding, cost variation and completion that have plagued the development of the nation’s critical infrastructure assets.
These include the 2nd Niger Bridge, Lagos to Ibadan Expressway, East—West Road, Abuja to Kano Road, Mambilla Hydroelectric Power among others.
This commitment by the President and NEC, allows all State Governments to own an economic interest in the project companies that will be professionally developed and managed by the NSIA.
The investments will yield returns, which will diversify revenues to States, improve the fiscal sustainability profile of the Federation and ensure Nigerians benefit from modernised Infrastructure for decades to come.
According to a statement released by the Presidency, the PIDF will secure counterpart funds required for projects being co-developed with China Exim and China Development Banks, and mobilize any additional funding required from development partners.