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Nigeria needs $800bn for 10yrs to fix infrastructure deficit as Dangote pledges to strengthen public, private partnership project financing

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3 years ago

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Economic experts in the nation’s infrastructure space have said that Nigeria needs an estimated $80 billion in financial commitment annually over 10years to fix its infrastructure deficit. Speaking at the national workshop of the Association of Business Editors in Nigeria (ABEN), themed: ‘Infrastructure Financing as Pathway to Sustainable Economic Development,’ leading infrastructure stakeholders in the Dangote Group and the Lagos state government among others, charged government at all levels to partner the private sector to fix the ailing infrastructure by aiding business growth and economic development. Speaking on the topic, the former acting Managing Director/CEO, Bank of Industry (BoI), Dr Waheed Olagunju, said there cannot be meaningful development without investment in infrastructure, which catalyses development in all sectors of the economy

According to him, “Nigeria needs $80 billion every year over the next 10 years to finance its infrastructure gap. And to address this, government must partner private sector to provide funding for key infrastructure projects.” Olagunju, who was also the chairman of the occasion, said, realising how critical infrastructure like road and rail transportation as well as maritime and aviation sectors are, the Federal Government through the National Development Plan (2021-2025) expected the transportation industry to generate 15 per cent of such funding amounting to N52 trillion of the over N300 trillion funding target, into the economy, even as it expects 85 per cent of resources to come from the private sector through a Public Private Partnership(PPP). While making a case for inclusive growth and sustainable development, the former BoI boss said, good ratings are critical to making Nigeria an investment hub, urging government to have an internationally acceptable standard and structure that financiers would be interested in, to fund developmental projects in the country.

“Nigeria must be an investment hub for investors. Let’s continue to market Nigeria as an investment destination, ignore negative reporting  that is negatively affecting the ratings of Nigeria as a country. Rule of law must be right to build confidence in the system. Our laws and constitution should not be cumbersome, should be adaptive and avoid too much bureaucracy that could distract investments. Infrastructure takes longer time between 20 to 30 years, hence, structures must be built around continuity of infrastructural projects irrespective of who is in government,” he pointed out. In a presentation at the event, the Dangote Group, who are the co-sponsors of the workshop promised to play more critical roles in the years ahead toward supporting public private partnership that will lead to improving the nation’s infrastructure space. 

Giving a keynote speech at the event, Lagos State’s Commissioner for Economic Planning and Budget, Mr Sam Egube, restated the need to raise capital from all credible sources to fix infrastructure, and to also ensure that the fiscal financing structure meets international standards, such that, the private sector can finance projects without any fear of losing their money. Egube said that Lagos State has tried this model and found it to be working, adding that, a lot of capital projects ongoing in the state have more private sector funding input leading credence to the quality of structures the state government has, to attract financiers for its projects.

According to him, to get funding from the private sector both local and international, for your infrastructure projects, your ratings must be right. Pension funds is also another alternative to finance infrastructure development but you must get your structure right to drive the needed funding. “Infrastructure is huge, so, it’s beyond the federal government alone, states and local governments must equally play their parts while the private sector provides the funding.” he pointed out. However, private sector is key in all these projects, hence, the government must embrace PPP arrangements to address infrastructure deficit in the country. ” he said.

“The Lekki deep seaport is three times bigger than Apapa port and what that does is to improve turn-around time, attracts investment and business opportunities to the Lekki axis and this is how development works. The rail system is targeted at transporting 32 million people monthly. The 4th mainland bridge project will soon be awarded by December. We target to lay 6,000km of fibre cable across the state, the first phase of 3,000km is almost concluded and what that does is increase internet connectivity and reduce the cost of data. Also, the managing director, of Sundry Foods Limited, Ebele Onunwa, who was represented by the company’s regional manager, Mr Jubril Shoaga, called on government to address the challenge of multiple taxation currently impeding Small and Medium Enterprises(SMEs) across the country.

Earlier, the chairman, of ABEN, Mr Omoh Gabriel said, the level of infrastructure deficit in the country is a cause for concern, calling for more discussions around this critical problem. He noted that every developed economy invested heavily in infrastructure, adding that,Nigeria’s case should not be an exemption. To this end, he called for strong collaboration between the public and private sectors to fix this challenge. Also at the event, goodwill Messages from the Dangote group, UBA and Access Bank, among other sponsors of the annual conference.

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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2 days ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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2 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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2 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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