Nigeria Needs $2.9tn To Develop Infrastructure – Jonathan

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GJThe President of the Federal Republic of Nigeria, Mr Goodluck Jonathan has said the country needs about $2.9tn investment layout to develop infrastructure over the next 30 years. Under our Integrated National Infrastructure Master Plan, we need a total of $2.9tn for our infrastructure developmental efforts from 2014 to 2045.

The President made this assertion at the Nigeria Power Sector Investors’ Conference held at the Banquet Hall of the Presidential Villa in Abuja on Monday. Jonathan, who was represented by Vice-President Namadi Sambo, explained that a significant percentage of the sum for infrastructure development was expected to come from the private sector.

“The energy sector alone needs an infusion of $900bn during the period. Of this, a significant percentage is expected to come from the private sector. The power sector alone needs about $10bn for CAPEX of the generation and distribution companies in the next few years in enabling us to add additional 5,000MW”.

“Similarly, our transmission network continues to attract serious attention. The transmission grid requires an annual investment of about $1.5bn for the next five years to ensure its reliability and stability.

“In order to meet our strategic national economic growth and developmental goals as encapsulated in the Vision 2020 and the transformation agenda, we needed to take decisive and courageous measure to work towards a 40,000MW target in the years ahead.  This informed our decision on reform and privatisation.”

On why the private sector was better suited to effectively manage and attract the huge capital required for constant and affordable electricity supply to all Nigerians, Jonathan said private investors had a track record of resilience, vibrancy, foresight and courage.

He noted that in virtually all sectors of the economy, the great show of enterprise, creativity and patriotism by private businesses had kept the country’s economy strong, versatile and forward looking.

“It was the dynamism of the Nigerian private sector that ensured the raising of over $2.5bn that ensured the successful conclusion of the power divestment process,” he said.

Jonathan added that the Federal Government was setting up a Power Sector Intervention Fund to enable industry players to have access to cheap and long-term funds.

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