FG: Infrastructure development will drive economic growth, create jobs, wealth

The Minister of Finance, Kemi Adeosun, on Thursday at the United Capital launch of its Eurobond and Wealth for Women Funds, said infrastructure development will play a fundamental role in unlocking Nigeria’s economic potential, laying a foundation for economic competitiveness and long-term future growth.
Adesoun said investment in critical infrastructure across the country will unlock job and wealth creation and strengthen economic development across all States in Nigeria.
Other speakers represented at the event included Tony O. Elumelu, the Chairman of Heirs Holdings; Toyin Saraki, the wife of the Senate President; and Erelu Bisi Fayemi, President, African Women’s Development Fund.
While speaking on the outlook for the Nigerian economy, the Minister noted that the Government is committed to increasing capital spend on critical infrastructure across key areas of power, rail, roads and water, which will underpin growth in priority sectors, especially agriculture and agro-allied, solid minerals, manufacturing and power.
Adeosun said: “We will now target 30 per cent of Government expenditure on infrastructure, up from 10 per cent.”
According to her, the Federal Government will mobilise private capital to complement Government spending on infrastructure.
She said: “We recognise that Government spending alone will be inadequate to bridge the infrastructure gap and we have started engaging the private sector through our housing fund and the road trust fund for which fundraising is in progress.”
Adeosun further explained that the Government’s debt strategy is an essential part of this process.
She said: “Today, our debt profile is un-balanced.
“We borrow heavily domestically, with too short a tenure and at a high cost.
“The impact of this is that we spend too much on interest and we crowd out the private sector from borrowing to fund their investment plans.
“This debt structure does not support our long term growth ambitions and so it must be amended.
“We need longer term and cheaper finance to support the infrastructure investments we must make.”
The Minister concluded her remarks by saying: “We expect infrastructure development to underpin the return to inclusive and sustainable growth in Nigeria.”