Rédaction Africa Links 24 with Rachael Omidiji
Published on 2024-03-26 22:11:51
President Muhammadu Buhari of Nigeria recognized the pressing need for significant infrastructure investments, estimating that the country requires $35 billion annually until the year 2040 to cover these expenses. Acknowledging that the government alone could not bear this financial burden, he established the Presidential Infrastructure Development Fund (PIDF) in collaboration with the National Sovereign Wealth Authority to address this crucial issue.
The PIDF played a crucial role in advancing key infrastructure projects such as the Second Niger Bridge and the Lagos-Ibadan Expressway. However, the fund encountered challenges related to funding constraints, project delays, escalating material costs, and bureaucratic hurdles. To overcome these obstacles and expedite infrastructure development, President Bola Ahmed Tinubu introduced the Renewed Hope Infrastructure Development Fund (RHIDF).
The RHIDF, unanimously approved by the Federal Executive Council on March 25, is envisioned as a game-changing and transformative fund to stimulate economic growth across various sectors including road and rail construction, agriculture, aviation, education, health, energy, and technology. With an ambitious target of raising N20 trillion (approximately $14 billion) as initial capital, the fund aims to support projects that will promote economic growth and enhance local value-addition through backward, forward, and parallel linkages.
One of the primary objectives of the RHIDF is to strengthen the agricultural value chain in order to bolster food security by reducing post-harvest losses and enhancing food supply chains. The fund will prioritize infrastructure projects like the Lagos-Calabar Coastal highway, Sokoto-Badagry Expressway, Lagos-Kano and Eastern Rail Lines, as well as modernization of ports and aviation facilities.
Unlike its predecessor, the PIDF, the RHIDF will explore a wider array of financing sources including pension funds, concessionary loans, insurance companies, sovereign wealth funds, private sector arms of multilateral development institutions, bilateral private sector investors, individual investors (including Diaspora Nigerians), endowments, and equity funds. President Tinubu emphasized the fund’s efficient management and its placement within the Presidency in order to streamline decision-making processes and circumvent bureaucratic delays.
During the Federal Executive Council meeting where the RHIDF was presented for approval, President Tinubu highlighted the Fund’s potential to accelerate infrastructure development and spur economic growth by drawing upon his experience with successful projects like the Lagos Metropolitan Area Transport Authority (LAMATA) during his tenure as governor of Lagos State. Members of the Council praised the initiative, recognizing its significance in driving socio-economic development and leaving a lasting legacy of impactful policies such as student loans, social security for the unemployed, and consumer credit.
In conclusion, the Renewed Hope Infrastructure Development Fund (RHIDF) represents a pivotal step towards addressing Nigeria’s infrastructure needs and fostering sustainable economic growth. With a strategic focus on critical national projects and partnerships with diverse financing sources, the RHIDF has the potential to unlock new opportunities for job creation, export promotion, and enhanced social welfare while positioning Nigeria for a more prosperous future.
Read the original article on Nigerian Tribune
