Business
We need to increase investment in infrastructure — CIBN
By Philemon Adedeji
The Chartered Institute Bankers of Nigeria (CIBN), has said Nigeria needs to increase investment in infrastructure to widely emphasize sustainable development and the clean energy transition and post-pandemic economic recovery.
The President/Chairman of the Council, Ken Opara made this statement at the 2022 occasion of CIBN fellowship investiture themed, “Bridging the infrastructure Deficit:The role of financial institution,” held in Lagos at the weekend.
While speaking at the occasion, he said, “Over the years, the public infrastructure deficit in Nigeria has become an issue of major concern.”
Generally, infrastructure is the foundation on which economic activities thrive.
According to the Africa Infrastructure Country Diagnostic Report released in 2011 titled “Nigeria Infrastructure: A Continental Perspective”, about 40 per cent of the productivity are caused by infrastructure constraints. There is therefore no doubt that the dearth of key infrastructure in several sectors of the economy has continued to limit Nigeria’s growth potential and its competitive abilities globally.
This infrastructure gap includes inadequate railway, poor road network, that can drive economic activities, poor drainage and water dredging system, port logistics and in some instances, non-existent power generation, transmission, and distribution systems, decaying public educational facilities, dilapidated government-owned hospitals (including tertiary healthcare facilities), and airports, amongst others.
Currently, the infrastructure deficit in Nigeria is put at $3 trillion.The Nigeria’s infrastructure report details show that deficit and projects need for an investment of about $32 billion year-on-year, through 10 years, for the country to bridge its huge infrastructure gaps.
Also, the Minister of Finance, Budget, and National Planning, Hajiya Zainab Ahmed, said Nigeria will need around $2.3 trillion over the next 21 years to make up for its infrastructure deficiencies.
Clearly, it is near impossible to expect the government to foot the entire bill. The approach adopted by the government in tackling infrastructure challenges over the years has largely been through a combination of budgetary allocation augmented by foreign and domestic debts. This approach partly accounts for the continued rise in Nigeria’s debt profile resulting in increased cost of debt servicing to the country. In this regard, there are serious concerns that project financing mainly through debt is not sustainable in the long run.
The question then is, with competing needs and dwindling resources, how can Nigeria create its industrial revolution? How can Nigeria fund the interstate road networks, railroads, electricity transmission lines, electricity distribution infrastructure, dams, sewage systems and other critical infrastructure, to spur job creation, a robust economy and improved standard of living for Nigerians?
These are difficult conversations to have but they are necessary. However, the answer lies in adopting new thinking, attitude, aptitude, and approach towards unlocking the required funding for economically viable public infrastructure projects.
A good place to start is for government to have a good financial model and a strong regulatory platform in place so that financial institutions can commit funds to Public Private Partnerships (PPP) to fund infrastructure development. Also, to create jobs and leapfrog growth and development, project lifecycles must be shortened, partners must be assured of their benefits without interference from successive governments, projects must be rid of conflict of interests, and minimum resistance from end users.
It is note worthy to mention that amidst the ongoing efforts to tackle this challenge, the Central Bank of Nigeria (CBN) announced the creation of the Infrastructure Corporation (InfraCorp) in October 2021 (after it was approved by the President in February 2021) to boost funding for capital projects in the country.
The InfraCorp was established by the CBN in partnership with African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA).
The activities of InfraCorp are expected to result in increased Foreign Direct Investment (FDI) in the Nigerian economy and an improved business environment.
“I must say that this is quite a remarkable initiative, and it is hoped the organization would bridge the infrastructural gaps in Nigeria today.”
He sincerely appreciated the esteemed guest speaker, Mr. Opuiyo Oforiokuma, Senior Partner, Africa50 Infrastructure Acceleration Fund, who has accepted to share with us extensive insights as he speaks to the ongoing efforts as well as the role of financial institutions in bridging infrastructure deficit in Nigeria. I earnestly look forward to this enlightening session and I encourage you all to be focused to get the most out of this event.
Fellowship Investiture is a statutory annual event where the highly esteemed fellowship status of the Institute is conferred on deserving members who have meritoriously distinguished themselves while making notable contributions to the success of the Institute, their respective organizations and the economy as a whole.
“The Honorary Fellowship of the Institute is also conferred on very deserving non-members of the Institute that contributed significantly to the growth of the economy and whose nominations are approved by the Governing Council of the Institute. This year, we are proud to honour 22 Honorary Fellows, 143 Elected Fellows and 244 Honorary Senior Members.
In conclusion, I congratulate all awardees on this milestone achievement, while using this opportunity to encourage you to use your new status and exemplary character as a shining beacon for the Nigerian banking industry and beyond.”
By Esther Agbo
The Director of Consultancy & Executive Services at the Nigerian Building and Road Research Institute (NBRRI), Makava David, has revealed that using alternative building materials like bricks and laterite can reduce housing construction costs by 25 to 30 percent, making homeownership more attainable for Nigerians.
He announced this over the weekend in Calabar following a presentation at the Cross River State Ministry of Housing. The presentation detailed NBRRI’s partnership with the Regional Sustainable Energy Centre of Excellence for Sub-Saharan Africa to initiate a 3,000-unit low-cost housing scheme across the state’s three senatorial districts, with backing from international agencies and local banks.
Speaking to journalists after the presentation, Mr. David stated that the use of alternative building materials would make houses much more affordable for the average person.
He said, “The cost of materials now is on the high side, the technology that NBRRI is bringing is mainly the use of locally sourced material used in building houses .
“We will use clay for the blocks, fibre for the roofing sheets and this will practically bring down the cost of the building up to 25 to 30 percent compared to conventional building material.
“The aesthetics is next to none, when it’s cold outside it’s warm inside and when it is hot outside it’s cool inside, that is why we are bringing this technology to the good people of Cross River with a payment period of 30 years, so that our people can have affordable houses they can call their home.
“Our target and the mandate of the consultant is to provide 3,000 units of low cost housing units in the three Senatorial districts of the state, and it takes less time to build once the materials are in place.”
Cross Rivers Commissioner for Housing, Dr. Beatrice Igwe, expressed government support for the initiative, highlighting Governor Bassey Otu’s commitment to projects that improve living standards. She lauded the tripartite meeting as a significant step towards reducing the state’s housing challenges by providing affordable, quality housing.
She noted, “The tripartite meeting you just witnessed is the birthing of a project that can reduce the housing challenges of the people of Cross River with a view to giving them modest and affordable housing.
“Alternative building materials are the future and the way forward. The presentation we have witnessed has shown that if properly executed there will be progress as well as a boost in the availability of low cost housing in the state.
“I can assure the partners , and other stakeholders that our Governor who has always put the people first , will key into any programme that will alleviate the suffering of the people and improve their living standard.
“I believe he will surely key into any good program that will make life comfortable for the common CrossRiverian.”
Project facilitator Sir Clay Ogeh Ekpong noted the state’s housing deficit, which prompted the outreach to both foreign and local partners to initiate low-cost housing estates.
He praised Governor Bassey Otu, describing him as a people-friendly leader, for his full support and commitment to the housing scheme.
Ekpong emphasised that the project aligns with the governor’s vision of providing homes for Cross River residents, significantly reducing housing challenges. He stated that plans are underway to construct 1,000 bungalows each in Odukpani, Ikom, and Ogoja/Yala local government areas.
Additionally, the CEO of RSECESSA, Dr. Ibrahim Aminu, expressed enthusiasm and anticipation for the project’s start.
CEO of RSECESSA, Dr. Ibrahim Aminu, expressed enthusiasm for the project’s commencement, noting that it aims to deliver affordable, high-quality housing without financial strain on buyers. The broader program targets building one million houses across Nigeria and the FCT, in partnership with NBRRI.
Aminu stated, “The partners have already put plans in motion to make the project a reality, the idea of reducing the challenges of housing is one aspect and then using alternative materials to build is another major aspect with a view of giving the people quality for their money without breaking the bank.
“We want to ensure that we bring affordable housing to our people and make sure they can also pay for these houses with ease and no pressures, and after retirement they can own good houses at the end of the day.”
By Esther Agbo
Minister of Works, Sen. David Umahi, has issued a warning that the Federal Government is prepared to terminate contracts with Julius Berger, CCECC, and RCC firms involved in two major South South road projects if they fail to demonstrate commitment within one week.
Speaking in Uyo, the Minister addressed Senate President Godswill Akpabio and other stakeholders from Akwa Ibom, emphasising President Bola Tinubu’s intention to launch the Calabar-Akwa Ibom sections of the Lagos-Calabar Coastal Highway by August.
Umahi specifically identified the Eleme-Onne Section of the East-West Road in Rivers State under RCC, and the Calabar-Itu Road sections managed by Julius Berger and CCECC as projects of concern.
He criticised the contractors for prolonged delays and incomplete work, accusing some of lobbying government officials to avoid penalties from the Works Ministry.
Umahi stated, “By end of this coming week, if Julius Berger fails to re-mobilise to site and CCECC fails to re-mobilise to at least 3 Sessions, their jobs will be terminated.”
Regarding the Eleme-Onne section of the East-West Road, Umahi stated, “The worse of the roads in the entire South South is that Section on the East West Road. RCC has collected over N40 billion. 15km of Road, N156 billion inherited from the past administration.
“We’ve been on them to change their ways. And by the end of next week the 14 days notice of termination will elapse and we will terminate the contract.”
Senate President Akpabio and Akwa Ibom Governor Umo Eno urged Umahi to address other neglected federal road projects in the state and ensure contractors fulfil their obligations to benefit residents and travellers.
By Esther Agbo
The Federal Government, continuing its infrastructural development under the Renewed Hope Agenda, has announced plans to inaugurate the next phase of the Lagos-Calabar Coastal Highway, spanning from Cross River to Akwa Ibom, in August.
This announcement was made by the Minister of Works, David Umahi, during a stakeholders engagement meeting at Ibom Hall in Uyo, Akwa Ibom State, on Saturday. The details were provided in a statement by the ministry’s Director of Information and Public Relations, Edet Ekpenyong, on Sunday.
Umahi highlighted that, “We are here to introduce Section Three and Four of the famous Lagos-Calabar Coastal Highway.
“We started and awarded Section One which started in Lagos and terminated at deep port in Lagos and is at 47.4km.
“There is Section Two that is starting at Lekki Deep Sea Port and taking it to the famous Dangote Refinery.
“The President has graciously directed that Section Three and Four must start at Cross River and stop at Akwa Ibom.”
He went further by asserting that, “Section Three has 27 km on Akwa Ibom land 38 km on Cross River State. While Section Four is entirely on Akwa Ibom that is 80 km.When you add 27 km and 80km, you have 107km. So, you are benefiting from maximising this coastal highway.
“When we complete the procurement process and award this Section Three and Four, work will start in many sub- sections of this section all at the same time.
“Tinubu is a man who matches his words with actions. So we are happy with the level of commendations and support we received from Nigerians and so many benefits of the coastal highway.”
Minister Umahi however praised President Tinubu for his commitment to matching words with actions, acknowledging the commendations and support from Nigerians.
Concluding the event, Senate President Godswill Akpabio thanked President Tinubu for initiating Sections Three and Four, urging Akwa Ibom State Governor, Pastor Umo Eno, to provide full support to the Federal Government.
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