Special Adviser to the President on Information and Strategy, Bayo Onanuga, has stated that the federal government will raise a total of $14 billion as take-off capital for the newly launched initiative known as Renewed Hope Infrastructure Development Funds.
Take-off capital refers to the initial funding needed to start a business or to launch a new project, often called “start-up capital” or “seed capital.”
The Renewed Hope Infrastructure Development (RHID), approved by the Federal Executive Council (FEC) on Monday, March 25, in Abuja, aims to bridge the infrastructural deficit in the country.
According to the presidency, Nigeria requires a total of $35 billion annually till 2040 to meet its infrastructural expenditures.
The federal government noted that the RHIDF is designed to succeed the Presidential Infrastructure Development Fund (PIDF), initiated by former President Muhammadu Buhari.
The government mentioned that its purpose is to enhance infrastructure and economic growth nationwide by focusing on essential national projects.
The federal government also noted that the RHIDF targets a total of N20 trillion in revenue generation to bridge the infrastructural deficit in the country.
In addition, the federal government noted that the fund will be used to finance rail projects across the country.
The government mentioned that the initiative aims to focus on significant transportation projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Expressway, and Lagos-Kano and Eastern Rail Lines.
Furthermore, President Tinubu reportedly stated that the Fund will be overseen by a Director-General and located within the Presidency.
According to Tinubu, this arrangement is intended to bypass the bureaucratic hurdles that typically slow down the execution of beneficial projects.
The presidency highlighted that the Fund aims to attract investment capital from a broader range of sources compared to the PIDF.
Earlier, Nairametrics reported that The Federal Executive Council had given its approval for the establishment of the Renewed Hope Infrastructure Fund, an initiative aimed at financing essential projects nationwide.