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.”
The Ministry of Marine and Blue Economy, under the dynamic leadership of the Honourable Minister, Mr. Isiaka Adegboyega Oyetola, has achieved an exceptional milestone by emerging as the overall best performing ministry in the Ease of Doing Business ranking.
This was revealed on Friday, at the town hall meeting, by the Special Adviser to the President on
Presidential Enabling Business Environment Council (PEBEC) and Investment, Dr. Jumoke Oduwole.
According to her, the town hall meeting, chaired by the Vice President, Senator Kashim Shettima, was organised to receive an update of the report on Regulatory Reform Accelerator (RRA) in line with President Bola Ahmed Tinubu’s eight-point agenda and prioritising business climate reforms.
She further said the minister summoned a meeting of the heads of agencies under his watch and charged them that he wants the ministry to come top and today he’s made it. “The minister deserves a special recognition and applause,” Dr. Oduwole added.
This recognition, experts noted, stands as a testament to the strategic vision and tireless efforts dedicated to advancing Nigeria’s marine and blue economy sector by the minister.
With the latest ranking, the ministry’s commitment to sustainable development and innovative policies has set a new benchmark for excellence in governance and public service.
By Esther Agbo
The Federal Government of Nigeria (FGN) has issued an update regarding the ongoing disbursement process for the Presidential Conditional Grant Scheme, aimed at alleviating economic hardship among Nigerian citizens.
The Minister of Industry, Trade, and Investment, FGN, Hon. Dr. Doris Nkiruka Uzika-Anite, made the announcement via her official X (formerly Twitter) handle on June 27, 2024, addressing applicants and the general public.
In her statement, she expressed gratitude to the applicants for their patience, noting that approximately 60 percent of the 1 million available grants have already been allocated.
She mentioned that with nearly 4 million Nigerians applying for the N50,000 palliative grant, the selection process has been competitive. However, she assured that the selection is conducted randomly by computer-generated processes, ensuring equal chances for all applicants regardless of their application timing.
She said, “It’s important to note that almost 4 million Nigerians applied for the Palliative grant of 50k, but only 1 million beneficiaries can be accommodated.
“This means not all applicants will receive the grant. The selection is not based on who applied first; everyone has an equal chance but by random computer generated selection.
“While Mr. President may launch other social intervention programs in the future, there are no immediate plans at this time.”
According to Doris, applicants can monitor the distribution progress through a dedicated portal at https://grant.fedgrantandloan.gov.ng/learn-more/dis… which provides updates on the number of beneficiaries per Local Government Area (LGA).
Doris however stated that the disbursement process has experienced delays due to issues such as incorrect or missing data, and duplicate applications, but despite these challenges, she emphasised that accuracy has been prioritised over speed to ensure a fair and transparent process.
“The teams in my office and BOI have worked tirelessly to ensure this process is fair and accurate. Testimonial videos are already being shared, showcasing how the grant has positively impacted lives and we will share many more. We have prioritised accuracy over speed to ensure every Nigerian who applied has a fair shot.
“We had hoped to complete all 1 million disbursements by now but the process has been delayed due to incorrect or missing data, duplicate and spurious applications, which we have had to meticulously clean up to ensure eligibility and validation,” she said.
She added that, in addition to the grant scheme, the government is nearing the final stages of vetting for the Micro, Small, and Medium Enterprises (MSME) and Manufacturing loans and applications for these loans remain open, with disbursements expected to commence by the end of July.
The Minister concluded by addressing the importance of constructive feedback from citizens, acknowledging the right of the public to hold the government accountable but urged for criticism to remain respectful and free from hate speech.
In her words: “Finally, it is your right as citizens to criticise and hold the government accountable. However, we encourage constructive feedback without resorting to abuse or bigotry. Personal insults and hate speech are not likely to aid your applications and will not be tolerated. Together, we can build a more prosperous Nigeria.”
Vice-President Kashim Shettima the has assured that President Bola Tinubu’s administration was committed to the prosperity of the Micro, Small and Medium Enterprises (MSMEs) in the country.
Shettima, represented by the Deputy Chief of Staff to the President, Sen. Ibrahim Hadejia, gave the assurance at the World MSMEs Day (Joint Nigeria and African Union event), held on Thursday in Abuja.
He said that the recent launch of the N150 billion MSME’s Intervention fund in partnership with the Bank of Industry, which offers single digit loans to MSMEs across Nigeria, among other interventions, was an example of the commitment.
Shettima said that MSMEs were the backbone of not only the Nigerian or the African economy, but of the global economy.
According to him, they account for 90 per cent of all businesses worldwide and employ over 60 per cent of the global workforce.
He said, ” It is no wonder that the United Nations has dedicated today, June 27, to recognise MSMEs and to celebrate them for their immense contributions to the economies of nations all over the world.
” In Nigeria, the stakes are even higher when it comes to MSMEs. MSMEs in Nigeria account for 96 per cent of all businesses.
”They contribute to our economy by over 45 per cent and without them, 80 per cent of the current Nigerian workforce will be without employment.
” These facts provide us with the evidence that if MSMEs prosper, Nigeria prospers, if MSMEs prosper, Africa prospers, if MSMEs prosper, the entire world prospers.”
Shettima, however, said that unfortunately, MSMEs in Africa were fraught with numerous challenges that hinder their growth and by extension, the growth of the African economy.
He added, ” It is for this reason that we have joined hands with the African Union Commission to hear from you all, our distinguished guest speakers and panelists, on devising the appropriate continental solution for this obvious continental problem.
” I want to urge us all not to forget that this gathering is a call to action. This means that we must all ensure that we do our part and put into action all the insights that have been uncovered from today’s occasion.
” Failure to do so would mean that we have gathered here for nothing and wasted another opportunity.”
Shettima appreciated the leadership of the African Union Commission for partnering with the Nigerian government to bring together relevant stakeholders to lend their voice to the important conversation on what could be done to better support MSMEs in Africa.
Earlier, Mr Tola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs, reiterated the determination of the government to put modalities in place to ensure that MSMEs access single digits loan easily.
He thanked WEMA bank for partnering with the Tinubu’s administration to expand opportunities in the MSMES space.
Adekunle-Johnson said, ” The essence of the partnership is to ensure that small businesses are able to get a single digits loan.”
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