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FG seeks N7.73trn by 2025 to grow Nigeria’s transportation sector

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THE Federal Government is seeking an estimated public investment of N7.73 trillion to improve Nigeria’s transportation sector.

This is according to its newly introduced Nigeria’s National Development Plan (2021 – 2025), which succeeds the Vision 20:2020 introduced in 2009 and the Economic Recovery and Growth Plan (ERGP) introduced in 2017, both of which have now expired.

“To achieve the goals outlined in the transportation sector, the estimated public investment is N7.73trn from 2021- 2025. Allocations will be made to priority projects in the sector as well as projects essential to the operations of the relevant MDAs at each level of government,” the plan reads.

The NDP plan is determined “to make Nigeria a country that has unlocked its potential in all sectors of the economy for a sustainable, holistic, and inclusive national development.”

It also has a funding target of N348.1 trillion (government, N49.7 trillion; private sector, N298.3 trillion) and is expected to generate 21 million full-time jobs and lift 35 million people out of poverty by 2025.

Volume I of the plan is structured around economic growth and development; infrastructure; public administration; human capital development; social development; as well as regional development and plan implementation.

In the transportation segment of the plan accessed by The ICIR, Nigeria’s transportation has four key segments – aviation, rail, road, and maritime – each of which has contributed to the functioning of the Nigerian economy. However, the key challenges have always been insufficient funding, an unclear regulatory framework, and a lack of multimodality.

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It notes that “progress is required towards expanding the current stock of transport infrastructure, increasing overall reliability, and ensuring multimodal transport solutions that would enable heightened levels of economic growth and development.”

To achieve this progress, it lists funding options available to the government. It considers the process of raising the sum of N100 billion on an annual basis via the Sovereign Sukuk Bonds for road infrastructure in five years.

It also explores the opportunity of accessing some funds via the $321 million from the proceeds of the Abacha loot to cover the execution of Lagos – Ibadan Expressway, Abuja – Kaduna – Kano Expressway and the Second Niger Bridge.

Similarly, the document says the Central Bank of Nigeria will put together Infrastructure Company (InfraCo) in collaboration with the NSIA and some private capital funding sources to raise $40 billion.

It also states that it is eyeing an additional $1.5 billion from pension funds, “assuming Nigeria’s pension fund assets valued at over $31.3 billion in 2019 grows at an average rate of 15.0 per cent per annum over the five years.”

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