The private sector has pledged through a special purpose vehicle working with the Federal Government, and key development finance agencies, to mobilize close to N1.2 trillion in funds from banks, pension funds, and other financial institutions, to fund road, power, and port infrastructure.
Central Bank Governor, Godwin Emefiele disclosed this during the Central Bank of Nigeria ‘Going for Growth’ Roundtable Session to a dinner at the State House Banquet Hall in Abuja.
According to him, the private sector has also identified six key road projects and three seaport projects for funding, adding that the special purpose vehicle implementation will commence in October 2020.
He said the private sector has committed that given a conducive environment, ideas generated at the round table will be implemented and through the CBN periodic updates will be provided to President Buhari.
Emefiele presented some of the key findings from the Roundtable session:
“Participants stressed the need for greater collaboration between the public and private sector in addressing some of the emerging challenges to growth. One key highlight was the need to ensure that the Nigerian economy is self-sufficient in the production of key goods and services, as this would strengthen our buffers and insulate our economy from external headwinds.
“Participants from the financial sector agreed to create a special purpose vehicle working with the Federal Government, and key development finance agencies. The well-structured SPV, will be used to mobilize close to N1.2 trillion in funds from banks, pension funds and other financial institutions, to fund road, power, and port infrastructure. Six key road projects and 3 seaport projects would be identified for funding. “
The framework for this SPV is currently being worked on and will be ready for implementation by October 2020. When implemented the SPV will help to reduce the burden of government financing of infrastructure projects and enable the government to focus on funding other priority areas.
“It will also reduce the cost of transporting goods across the country for farmers, SMES and Manufacturers. More importantly it will help improve our ability to attain double digit growth rates.
“Recommendation were also made on ways to improve broadband penetration in the country, which is critical in enabling Nigerians access the benefits that come with greater utilization of technological applications. One area highlighted was the need to create a one stop shop that investors could interface with in order to reduce multiple taxation.
“In order to improve agriculture and manufacturing productivity, participants noted the need for innovative financing schemes that require minimal collateral from farmers and SMEs. More importantly, the emphasis was also placed on improving the processing of six key commodities such as palm oil, dairy, cassava, wheat, aquaculture, and sugar. Increased processing of these commodities could lead to the creation of over one million jobs over the next two years.”
At the diner, President Buhari assured the nation that his administration will pay close attention to the recommendations made by the participants.
The participants included officials of both public and private sectors such as businessman Aliko Dangote, CEO Zenith Bank, Mr. Jim Ovia, among several others
Vice President Yemi Osinbajo, Minister of Trade and Investment and the Secretary to the Government of the Federation were also among those present.
