CG/LA Infrastructure's InfraBlog
BY KUNLE ADERINOKUN, 22 JULY 2013
The federal government has said the implementation of a new blueprint on Nigeria Integrated Infrastructure Master Plan (NIIMP), would cost $2.9 trillion.
The Minister of National Planning, Dr. Shamsudeen Usman, who disclosed this at a dinner organised by Business Support Group (BSG) at the weekend, stated the master plan had been designed to raise the nation’s stock of infrastructure from the current 35 to 40 per cent of Gross Domestic Product (GDP) to 70 per cent of GDP in 2043- that is, in 30 years.
Usman pointed out that according to the master plan, 48 per cent of the $2.9 billion would come from the private sector.
The NIIMP is a 30-year master plan for accelerating infrastructure development in the country. It focuses on core infrastructure, including energy (power and oil and gas), transport (roads, rail, ports and airports), housing, water and ICT. Other infrastructure classes include agriculture, mining, social infrastructure, vital registration and security.
The draft NIIMP contains a long term vision that sets the overall direction for the master plan and strategic objectives, such as per capita income and GDP growth.
It also describes the overall investments required in infrastructure, over the next 30 years and contains a financing plan and sector and regional strategies, as well as a priority projects portfolio. As an actionable plan, the NIIMP also highlights enablers for implementation and an implementation plan.
Usman pointed out that the huge investment drive of the NIIMP required the federal government to explore various financing options, adding that the private sector would be expected to play a more significant role in financing infrastructure development.
According to Usman, the great potential for private sector participation places additional responsibility on the public sector.
“Given the global nature of infrastructure investment, it implies we have to compete. To compete, we have to strengthen the policy, legal and institutional frameworks for effective infrastructure development as well as improve security. It will also require fiscal incentives and capability building for the management of Public-Private Partnerships (PPP).
“The main objective of setting up the BSG of the NIIMP was, in fact to harvest from the private sector; it’s perception of the required enabling environment as well as the specific actions required to achieve it. The NIIMP also highlights the challenge of local capacity, especially in terms of manpower and technology.
“Addressing this challenge will require collaborative effort of the public and private sectors. Strategies for improving manpower need to be developed and investment in training must increase significantly. In addition to building a local skills base, there is the need to have a strong institutional framework for the enforcement of standards and quality control,” Usman added.
He further stated the private sector would work with professional bodies in ensuring, not only quality infrastructure, but also proper operation and maintenance of the facilities.
Usman also noted that importantly, to achieve a sustainable infrastructure development, the private and public sectors had to increase investment in research and development.
“The BSG is a good starting point. Through the BSG, both sectors are now on the same page, with regards to infrastructure development in Nigeria, in general, and the NIIMP, in particular,” he declared.
In his remarks, Dr. Oba Otudeko, stressed that critical sectors of the Nigerian economy suffered unforgiveable neglect for many years culminating in the inadequate level of social infrastructure.
“Undoubtedly, efforts at developing social infrastructure in our country to the levels obtainable in the developed world must be holistic, strategic and concerted.
“As a 30-year long term planning tool for implementing infrastructure programmes to meet the peoples’ demand for infrastructure services, the NIIMP is a most welcome development and we must applaud the National Planning Commission (NPC) and the federal government for such a laudable initiative,” Otudeko said.
Taken from AllAfrica: http://allafrica.com/stories/201307220490.html