The Acting Managing Director and Chief Executive Officer of The Infrastructure Bank, Nkiru Chime, has said that the bank will engage state governments in the management of the Infrastructure Support Fund.
In December 2022, the World Bank still adjudged Nigeria low on infrastructural development, ranking it at 132 of 136 countries surveyed. It noted that at the current slow rate of development, it would take 300 years to fill the gap.
The Federal Government recently said that in order to attain its National Development Plan and improve Nigeria’s economic outlook, it will require N298.3tn capital investment commitment from the private sector.
It said the total investment needed between 2021 and 2025 is N348tn, but only N49.7tn (14.3 per cent) is expected to come from the government while the rest will come from private sector players in the economy.
The current administration recently established an Infrastructure Support Fund for the 36 States of the Federation as part of measures to cushion the effects of the petrol subsidy removal.
Regarding the newly established fund by the Federal Government, Chime noted, “The TIB is positioning to work with the state governments and minister to optimise that fund.”
Ms Chime further stressed the need for private capital to bridge Nigeria’s infrastructure deficit.
Speaking at the unveiling of the bank’s new logo and strategy on Wednesday in Abuja, Ms. Chime noted that the bank is working with the government to ensure there are relevant policies that would attract public sector funding.
She said, “At TIB, we believe that the key to bridging the infrastructure deficit lies in attracting private capital into the space. So, TIB is working with the government; we are advocating for the right policies to enable the private sector to come in and invest.
“TIB also has what it takes to bring in viable projects, which is what the private sector needs to invest.”
She further disclosed that the bank is recapitalising, with a plan to take shareholder funds to the minimum prescribed share capital of N10bn, and over the next 15 months, to grow that capital to over N100bn.
She added that the bank is set to attract more capital, and grow its capital base to about N1tn in the next five years.
Also speaking, the Group Managing Director, Norrenberger group, Mr Tony Edeh, stressed the need for proper infrastructural development of the country.
He said, “We know that before now there have been inconsistencies and inefficiencies in financing the government’s infrastructural contracts. So, what we want to do is to meet the government with the skills in the private sector and use those skills to support the government in ensuring that infrastructural development is fast-paced and is done in the way and manner that meets Nigeria’s demand for infrastructure. We know that the only way a country can move forward is its level of infrastructure.”
