BusinessHighlight

Nigeria seeks $172bn investment boost in key sectors

The National Integrated Master Plan estimates that Nigeria will need $3 trillion in infrastructure funding over the next 30 years, despite having secured $30 billion in investment commitments.

536

Nigeria Backbone Infrastructure Limited, a multinational company, has announced plans to invest $172 billion in the development of various infrastructure sectors across the country over the next 22 years.

Alternative financing options will finance the investment across multiple sectors, including mineral resources, energy, agriculture, housing, and transportation.

President Bola Tinubu’s administration has reiterated its dedication to attracting increased foreign direct investment and exploring alternative financing solutions to support the development of critical infrastructure projects.

In a recent update, Minister of Industry, Trade, and Investment, Dr. Doris Aniete, announced that the government has successfully secured $30 billion in investment commitments from international investors, demonstrating the administration’s commitment to driving economic growth and development.

The National Integrated Master Plan estimates that Nigeria will need $3 trillion in infrastructure funding over the next 30 years, despite having secured $30 billion in investment commitments.

To address this, Mr. Henry Owonka, Group Chief Executive Officer, announced that the company is seeking approval for a joint venture model with foreign partners to facilitate its planned $172 billion investment in the country’s infrastructure development.

Owonka emphasized that the company intends to align with the current administration’s infrastructure plan, highlighting that a consistent influx of investment, as proposed by the company, is preferable to isolated investments by other investors, especially in the mining sector.

He said: “The company expressed its interest in investing in a range of commodities. We are seeking approval for a joint venture model because, in that way, we can draw more investors not only in the country but also outside the country.

“Because when you have a joint venture with the government, it’s better, and that’s what we are seeking, rather than for them to just issue land to us.”

The CEO announced that the company intended to invest $4 billion in the mining sector to explore mineral resources.

“But we need data, and that is also one of the offers we proposed so that we can bring in our expertise and help the government obtain accurate data, and then we can explore those minerals.

“This partnership will help the government reduce its dependence on crude oil. We are also doing this across all the ministries because it’s a $172 billion investment drive.”

During a presentation at the Ministry of Solid Minerals Development, Chief Operations Officer Mr. Clement Kwegyir-Afful emphasized that the investment drive aims to bridge the significant infrastructure gap in Nigeria.

He said: “The current administration is looking for several investments to come in through the private sector to reduce the infrastructure gap. The NBIL has come together as a team to support the government in achieving this mandate without any sovereign guarantee.

“We want to help address the energy gap through the use of renewables, so one of our subsidiaries focuses on renewables and how we can address that. We are going to bring in innovative ways of funding through financial engineering to raise funds that would address the infrastructure gap.

“Minerals exploration is one area the government wants to use to create another source of revenue shifting from oil, and that is one strong area that we want to focus on. It will raise a different form of revenue.

“To do this will require a significant amount of money, so over the next 22 to 23 years, we are looking to invest $172bn billion. If you break this down yearly, that works out to $6bn every year in investment out of the numerous numbers the president is looking for.

“We have grouped our project into phases; the first one will be the ones that have the most impact on Nigeria’s landscape, so we are looking at hospitals, renewable energies, mineral exploration, and exportation because that is where we have huge concerns, and also some of the deep sea ports.”

Leave a comment

Related Articles

New minimum wage captured in supplementary N6.2trn budget

The Minister of Budget and National Planning, Mr. Atiku Bagudu, says the...

Tinubu appoints ex-LASU VC, Prof. John Obafunwa, NIMR DG

President Bola Tinubu has appointed Prof. John Obafunwa as the Director-General of...

Food security: Reps mull budgetary increase for farmers

Mr. Tajudeen Abbas, Speaker of the House of Representatives, has announced that...

Edo guber poll: Appeal Court affirms PDP’s Ighodalo’s candidature, dismisses Shaibu’s appeal

The Abuja Court of Appeal has upheld the validity of the People’s...

Insecurity in Northwest region compounded by banditry, illegal mining – Lagbaja

The Chief of Army Staff, Lt.-Gen. Taoreed Lagbaja, says the insecurity plaguing...

Abuja property dispute: Court throws out Abacha family’s N500m suit against FG

A Federal High Court in Abuja has thrown out a lawsuit filed...

AFCON Beach Soccer: Victorious Supersand Eagles set to return to Nigeria on Tuesday

By Monday midnight, Nigeria’s Supersand Eagles, who stunned hosts Mauritania 5-4 in...

GWR: Sanwo-Olu lauds Fola David for largest drawing new record

Lagos State Gov. Babajide Sanwo-Olu has congratulated Nigerian visual artist, Dr. Fola...

Tinubu hails new NBA EXCO, promises support

President Bola Tinubu has congratulated Mazi Afam Josiah Osigwe (SAN) on his...

NMA urges government to check brain drain, save sector from ageing workforce

The Nigerian Medical Association (NMA) has called on the government at all...

I’m no longer interested in investing in Nigeria’s steel industry, says Aliko Dangote

Alhaji Aliko Dangote, the Chairman of Dangote Industries Limited, has halted the...

NDLEA uncovers hard drugs hidden in incense candles, women’s clothing in Lagos

Operatives of the National Drug Law Enforcement Agency (NDLEA) in Lagos have...

Nigerian doctor, Fola David, makes history, breaks world records for largest drawing

Nigerian doctor and visual artist, Fola David, has made history by surpassing...

Dangote Refinery, Lagos, hosts Speaker, other Reps

A delegation of the House of Representatives, led by Speaker Tajudeen Abbas,...

Tinubu meets security chiefs, harps on improved synergy to curb insecurity

President Bola Tinubu has tasked security chiefs with coordinating and synergizing efforts...

Lagos unveils comprehensive plans to enhance waste management

The Lagos State Government has unveiled comprehensive plans to enhance waste management...

My new album represents journey of African music—D’banj

Nigerian music star D’banj has concluded plans to release his highly-anticipated fifth...

Gordons ‘D Berlusconi Misunderestimated’ set to “light up” Lagos in September

Legendary Nigerian comic king and performer, Gordons, is set to bring his...