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CBN’s N15trn Infrastructure Fund key to Nigeria’s economic growth – Expert



CBN’s N15trn Infrastructure Fund key to Nigeria’s economic growth – Expert

By Ifeanyi Nwoko

Construction industry expert Mr. Temitope Runsewe praised the Central Bank of Nigeria (CBN) for its N15 trillion infrastructure fund project, saying it was essential for the establishment of jobs and economic growth.

Speaking to Nigeria’s news agency in Abuja on Tuesday, Runsewe said the possibility of using private sector funds to support infrastructure investments in critical sectors of the economy presented enormous advantages.

He recalled that in July, the Secretary of the Government of the Federation (SGF), Mr. Boss Mustapha, had alluded to the fact that the country’s infrastructure deficit would require billions of dollars per year to be corrected.

He also pointed to a report by a credit rating agency – “Moody” in a 2020 report where he predicted that Nigeria would need around three trillion dollars over the next 30 years to resolve its financial problems. ‘infrastructure.

In this context, Runsewe praised Apex Bank for its bold proposal, adding that examples abounded around the world of private sector funds being used for investment projects.

“The effects of an unstable power supply, dilapidated public infrastructure and inadequate social amenities are a reality most Nigerians are familiar with.

“While the government has recently scaled up infrastructure projects such as railways and roads across Nigeria, studies show that Nigeria’s low GDP figures are closely linked to inadequate infrastructure provision.

“Our biggest challenge with economic growth in Nigeria is the glaring infrastructure deficit, which government alone cannot correct.

“There is an urgent need to involve private sector capital in the mix to ensure that the country’s economic potential is enhanced by providing the roads, electricity and other public facilities needed in a growing economy,” he said. -he declares.

Nigeria’s N15 trillion infrastructure fund (InfraCorp), which will be launched in October, is expected to address the challenge of the country’s infrastructure deficit, reports.

The fund, which is backed by the African Fice Corporation and the Nigerian Sovereign Investment Authority, seeks to use private sector capital to support infrastructure investments, according to Apex Bank.

Speaking on the impact the fund would have on the Nigerian economy, Runsewe, Managing Director of Dutum Company Ltd, said that as an expert in the construction industry, he understood the need for funds for development. infrastructures.

“Working in the construction industry over the years, I have seen first-hand the challenges that national and subnational governments face in meeting the infrastructure needs of citizens.

“What InfraCorp provides is not only the funding needed to help the government close the infrastructure gap, it also opens up opportunities to create more jobs in the construction industry and improve skill levels. professionals.

“Anyone can attest that the level of excellence demanded by the private sector is much higher than that obtained in the public sector.

“This means we will minimize waste and optimize service delivery.

We could end up saving up to N2trn each year by opening up the provision of public infrastructure to global best practices, ”he said.

Runsewe added that with such professionalism, more resources will be available for the government to improve education and health care delivery, among others.

Source: NAN

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