Osinbajo seeks more private sector investment in Nigeria’s infrastructure

ACTING President, Professor Yemi Osinbajo, SAN, has called for more private sector investment in development of infrastructure in Nigeria, saying government alone could not address the huge infrastructure needs of the country.

He spoke on Tuesday in Abuja at the Africa Finance Corporation (AFC) conference on infrastructure, which coincided with the 10the anniversary celebration of the Corporation.

Osinbajo, noted that the major obstacle to accelerated development of the African continent, was the huge infrastructure deficit because inadequate investment in the critical sector.

He said the current administration of President Muhammadu Buhari, has taken bold steps to address this challenge but insisted that the private sector remained key to the actualisation of this objective.

He said: “As a matter of fact, it is very clear that government cannot finance the huge infrastructure needs of most countries. Without the private sector, it is absolutely impossible for government to finance infrastructure needs in the continent.

“Take Nigeria, for example, all our refineries put together, at the moment will not produce 600,000 barrel per-day but one single private sector investor is building the largest refinery of 650,000 barrel per-day capacity”.

He commended the AFC for its commitment to infrastructure development in Africa, especially its role in bringing together private sector raising capital for infrastructure development projects in Nigeria and other countries in Africa.

Minister of Finance, Mrs Kemi Adeosun, who also spoke at the occasion, said the current administration has released about N1.2 trillion in the last 12 months for capital projects in line with the commitment of the government to infrastructure development.

She said the Federal government would continue to explore public-private sector participation in the development of infrastructure in the country.

The Chief Executive Officer and President of AFC, Mr Andrew Alli, said AFC has contributed to the elevation of African Infrastructure as an asset class, and as a direct result more industry players have entered the market than was the case at the inception of the Corporation in 2007.

He disclosed that the Corporation convened AFC Live in 2014, it has invested US$2.5 billion in projects, including in Guinea Conakry Gabon Rwanda (Cameroon and of course Nigeria.

He added that AFC has raised US$3.5 billion in capital from a range of sources, including recently tapping the Eurobond market for US$500 million bond and launching the first Sukuk for US$150 million, by an African Supranational Entity earlier this year.

Alli, said: “We have expanded our geographic footprint, with 14 member countries now, and US$4 billion of investments in the last decade in 26 projects across 30 markets and diversified our advisory practice to provide services to companies, institutions and governments looking to optimise their infrastructure resources. We have been appointed and acted on mandates in Nigeria, Rwanda and Djibouti”.