President Bola Tinubu has approved the Renewed Hope Infrastructure Development Fund to facilitate effective infrastructure development across the pivotal areas of agriculture, transportation, ports, aviation, energy, healthcare, and education in Nigeria.
This is contained in a statement by Chief Ajuri Ngelale, Special Adviser to the President on Media and Publicity, on Monday in Abuja.
He said that the Fund would invest in critical national projects for the promotion of growth, enhancement of local value-addition, creation of employment opportunities, and stimulation of technological innovation and exports.
BRANDPOWER reports that the objectives of the Fund are to establish an innovative infrastructure investment vehicle to attract and consolidate capital, serving as a dynamic driver for economic advancement.
It is to execute strategic and meticulously chosen national infrastructure projects across several key sectors, including road, rail, agriculture (irrigation, storage, logistics & cold chain), ports, and aviation, among others.
It is also to efficiently utilise and aggregate accessible low-interest loans such as concessionary loans and Eurobonds, supplemented by the procurement of other favourable financing options, in addition to budgetary allocations.
The fund will guarantee Nigeria secures the most advantageous arrangements for financing, construction, and subsequently, operation and maintenance of the identified projects, ensuring optimal long-term outcomes for the nation.
It will likewise identify appropriate approaches in its investment strategy, such as direct project financing through budgetary allocations and SPVs; co-financing (public-private partnerships) with key institutions, multilateral development institutions, as well as equity investments.
On agricultural infrastructure and food security, Ngelale said the emphasis was on the development of robust agricultural infrastructure networks.
He said that this encompasses the establishment of national food storage facilities, integrated irrigation systems, ranching for animal husbandry, and the enhancement of agricultural logistics and distribution.
On ports revitalization, the Presidential spokesman said the strategic thrust revolves around the rejuvenation of port facilities and associated infrastructure to streamline operations and enhance the ease of doing business.
“By modernizing port facilities and implementing advanced monitoring systems, the goal is to optimize efficiency, attract investments, and bolster Nigeria’s position as a regional trade hub.
“On aviation enhancement, the focus is on the revitalization and modernization of major airports nationwide. Through targeted investments and infrastructure upgrades, major airports will undergo comprehensive refurbishment, including improvement in terminal facilities, runway expansions, and the implementation of cutting-edge technologies to enhance safety and operational efficiency.
“On road infrastructure, some of the strategic projects to receive attention include the Lagos-Calabar Coastal Road, the Sokoto-Badagry Road, among other key road projects across the nation. This is to enhance connectivity, facilitate transport efficiency, and stimulate economic growth across regions.”
Ngelale said on rail infrastructure, Lagos-Kano and Eastern rail lines are among the projects to be prioritized by the Fund.
He said that the aim was to ensure the modernization of transportation networks, fostering interconnectivity between key urban centres, and facilitating the movement of goods and people with greater speed and reliability.
“President Tinubu has also approved that the Presidential Infrastructure Development Fund (PIDF) be absorbed into the new Renewed Hope Infrastructure Development Fund (RHIDF), which will successfully eliminate identified bureaucratic inefficiencies, enhance domestic and external counterpart funding opportunities, and expedite project delivery timelines for the benefit of the Nigerian people.
“As the major infrastructural enabler of his global push for foreign direct investment across sectors, the President has further directed that the projects funded under the Renewed Hope Infrastructure Development Fund (RHIDF) reflect an equitable national spread, such that every Nigerian is impacted by the initiatives of his administration in the most qualitative fashion possible,” he said.
FEC Approval came earlier
President Tinubu’s approval came after The Federal Executive Council (FEC) approved, earlier in the day, the establishment of the Renewed Hope Infrastructure Fund to bridge the gap of social services across the country.
Mr Zach Adedeji, Chairman of the Federal Inland Revenue Services (FIRS), disclosed this at the end of the 4th FEC for the year, on Monday in Abuja.
He said that the fund would serve as a Special Purpose Vehicle to attract the much needed investment, in the country’s infrastructure demand for development.
“We put a holistic approach to how do we sustainably mobilise resources to actually fund the development of the country.”
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He said that the initiative was a way of bridging the over 858 billion dollars infrastructure gaps that was deterring national development.
Adedeji said that the fund would address the usual concern of genuine investors towards having a quasi-government structure to guarantee the safety of their funds.
“So, this innovative fund, consolidate a system resources to drive economic growth and connectivity across sectors like transport, agriculture, aviation education and others.
“It aims for inclusive progress, leaving no community behind.
“The key objective of the fund is to invest in nationally critical projects in sectors that will promote growth and has local value addiction through backward, forward and parallel linkages.
“Create employment opportunities, promote technological innovation, and promote exports. The potential sectors for focus will be agriculture, energy, technology, infrastructure, healthcare and education.”
He added that the fund would, for now, give priority to road, rail and agricultural infrastructure, port revitalisation and aviation enhancements.
Adedeji said that the fund would be launched by President Bola Tinubu after a Supplementary budget is presented by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to the National Assembly.
