Nigeria should invest $3 trillion on infrastructure over 20 years
The present infrastructural deficit in the oil and gas, power and other sectors of the economy will continue to adversely impact on its economic growth.To remedy this situation and be on sound economic footing she needs to invest over three trillion dollars in infrastructure across boards over the next 20 years.
This was the view of Emeka Okwuosa, the Chairman, Oilserv Group, who spoke on “Infrastructural Development: A Key to Economic Growth and Development in Nigeria” at the 48th convocation of the University of Nigeria, Nsukka.
He said the investment would also help to optimise the collective contributions from operators in various sectors and for positive impacts in various sectors of the economy.
According to him, the World Bank ranks Nigeria lowly as viable destination for doing business pointing to the poor state of its infrastructure.
Nigeria needs to invest over US$3 trillion in infrastructure over the next 20 years,” he said.
Okuwosa asked: Where can we source for this funding? It is evident that government alone cannot provide these resources.
The Oilserv boss said that Federal Government must without delay, leverage the private sector capital in a variety of ways such as creating special purpose vehicles for financing creations and drive.
He urged the government to also develop public-private partnerships, and investment funds with a variety of guaranty plans and arrangements.
He said that government key role could be to create and sustain an enabling environment by deploying instruments like the Nigeria Sovereign Investment Authority with its arm.
Okwuosa suggested that the National Sovereign Wealth Fund should act as a catalyst for the provision of funding needed for development.
The government and the private sector must, as a matter of urgency respond to these deficiencies in the economy by accelerating infrastructure development.
“By this, I specifically refer to power, roads, rail, ports and telecommunication (especially broadband technologies).
“Also equally important and in alignment, is the development and implementation of the legal and regulatory frameworks and environment and all other related processes that will enhance the ease of doing business in Nigeria.
“Today, the total value of Nigeria’s infrastructural stock (road, rail, power, airports, waterways, telecoms, and seaports) represent only 35 per cent of Gross Domestic Products (GDP).
“ In consideration and comparison to other peer emerging markets countries whose average is 70 per cent of GDP, Nigeria is way below expectation for an appreciable development for economic growth and prosperity,’’ Okwuosa added.
He said that the massive underinvestment in infrastructural development had been the result or bane to achieving the nation’s vision of becoming a top 20 economy by the year 2020.
OLUSOLA BELLO