FG can only fund 31% of infrastructural projects, says Anyim
The Federal Government cannot fund more than 31 per cent of the required investments in infrastructure, the Secretary to the Government of the Federation, Senator Pius Anyim, has said.
According to him, the government has to attract private investors to upscale infrastructural development in the country because of the huge capital outlay required for the purpose.
The SGF spoke on Thursday in Abuja at the Infrastructure Concession Regulatory Commission's conference for the disclosure of contract information on Public-Private Partnership projects in Nigeria.
Anyim was represented by the Permanent Secretary, Special Duties, SGF's office, Dr. Jamila Shuara.
He said, 'In view of competing demands for scarce national resources, statistical indices reveal that the Federal Government can maximally fund only about 31 per cent of the total required investments in infrastructure, while states and local governments can fund only 28 per cent.
'The balance of 41 per cent must inevitably be funded by the private sector. It is this desire of government to upscale infrastructure development and the inadequacy of resources that has necessitated the recourse to the PPP model.'
Anyim explained that the country must consider the PPP model to drive the attainment of national goals and objectives in infrastructure development.
He said the ICRC was expected to address the huge national infrastructure deficit by empowering government ministries, departments and agencies to utilise the PPP model as procurement method of choice to rapidly turn around the country's infrastructure.
'The overall aim is to fast-track the process of initiating, developing and implementing PPP projects in a transparent, competitive and sustainable manner that would ensure value for money for the economy, while putting in place world infrastructure for citizens.'
The SGF further observed that the commission had the arduous task of creating enabling environment for the private sector to partner with the government in financing, operation and management of infrastructure and allied services.