Stakeholder harps on alternative funding to unlock opportunities in transportation, energy infrastructures
By Sunday Dominic
The Executive Director, Corporate Banking, FSDH Merchant Bank, Stella Marie- Omogbai has said that unlocking the opportunities in transportation and energy infrastructures through alternative funding is the way forward to unleashing Nigeria’s economic potential.
Ms. Omogbai, who was a panelist at the 16th Annual Banking and Finance Conference held in Abuja, advised policy makers, and other key players in the business sector on the need to unlock the opportunities in the transportation and energy infrastructures.
“Infrastructure is a business, and like every business there are challenges and there are opportunities, but to move past the challenges, we must begin to explore the opportunities” She said.
Omogbai, citing the National Integrated Infrastructure Master Plan (NIIMP) said that the first two things where we should focus on are energy and transportation infrastructures.
The NIIMP is government’s strategic document which was initially developed in 2012 by the Federal Ministry of Finance, Budget and National Plan to guide Nigeria’s infrastructure investment, add value to the national economy and in particular enhance private sector participation in infrastructure development. It provides an integrated view of infrastructure development in Nigeria, evaluates current stock of infrastructure, and provides the roadmap for building a world-class infrastructure that will guarantee sustainable economic growth and development.
Omogbai said that the opportunities to the transportation and energy infrastructures need to be unlocked. This, according to Ms Omogbai, will create a multiplier effect in the economy, and enable the nation to take advantage of the vast opportunities in the domestic and global economies.
“We have done quite a lot of work on transportation, and energy, but I believe that there is more that we can still do.”
Speaking on the benefits of unlocking the opportunities to transportation, Ms Omogbai said that when goods are allowed to move properly, we will be able to export and compete favourably.
“If you spend money on energy and power, your goods also be able to compete in the international market.”
“The NIIMP has reaffirmed that Nigeria needs to put in on an annual basis, $50 billion, and if you translate that using the current exchange rates, that’s about 80 trillion Naira. That is in fact, more than three and a half times, what we have spent in the last 40 years on infrastructure.” She explained.
Omogbai added that the only solution to solving this economic challenge is to explore other opportunities and begin to look out for other alternative means of funding infrastructures in the country.
“We cannot leverage on the balance sheet of the government anymore for infrastructure, we must begin to explore other options to attractive finance, and one that does not require us going into debts.”
“To achieve this, we must have regulations and licensing that creates an enabling environment for more parties to come in.”
“Once there is an enabling environment, we will continue to explore the opportunities in infrastructure, thereby unleashing Nigeria’s economic potential.” She concluded.
