In a bid to accelerate infrastructure development in Nigeria, President Bola Tinubu on Monday unveiled the Renewed Hope Infrastructure Development Fund while retiring the Presidential Infrastructure Development Fund (PIDF) established by his predecessor, Muhammadu Buhari.
The initiative aims to catalyze infrastructure projects across pivotal sectors, including agriculture, transportation, ports, aviation, energy, healthcare, and education in Nigeria, said the president’s spokesman, Chief Ajuri Ngelale.
The Fund’s primary objectives are multifaceted.
Firstly, it will establish an innovative investment vehicle to attract and consolidate capital, serving as a dynamic driver for economic advancement.
Secondly, it will execute meticulously chosen national infrastructure projects across several key sectors, such as road, rail, agriculture, ports, and aviation, among others.
Ngelale added that the Fund will efficiently utilize and aggregate accessible low-interest loans, such as concessionary loans and Eurobonds, supplemented by the procurement of other favourable financing options, in addition to budgetary allocations.
The approach, according to the presidential spokesman, will ensure that Nigeria secures the most advantageous arrangements for financing, construction, and subsequently, operation and maintenance of the identified projects, ensuring optimal long-term outcomes for the nation.
The Fund’s investment strategy will encompass diverse approaches, including direct project financing through budgetary allocations and Special Purpose Vehicles (SPVs), co-financing (public-private partnerships) with key institutions and multilateral development institutions, as well as equity investments.
This diversification will enable the Fund to address the multifaceted needs of various sectors effectively.
Quoting Ngelale, “On agricultural infrastructure and food security, the emphasis is on the development of robust agricultural infrastructure networks. This encompasses the establishment of national food storage facilities, integrated irrigation systems, ranching for animal husbandry, and the enhancement of agricultural logistics and distribution.
“On ports revitalization, the strategic thrust revolves around the rejuvenation of port facilities and associated infrastructure to streamline operations and enhance the ease of doing business. By modernizing port facilities and implementing advanced monitoring systems, the goal is to optimize efficiency, attract investments, and bolster Nigeria’s position as a regional trade hub.
“On aviation enhancement, the focus is on the revitalization and modernization of major airports nationwide. Through targeted investments and infrastructure upgrades, major airports will undergo comprehensive refurbishment, including improvement in terminal facilities, runway expansions, and the implementation of cutting-edge technologies to enhance safety and operational efficiency.
“On road infrastructure, some of the strategic projects to receive attention include the Lagos-Calabar Coastal Road, the Sokoto-Badagry Road, among other key road projects across the nation. This is to enhance connectivity, facilitate transport efficiency, and stimulate economic growth across regions.
“On rail infrastructure, Lagos-Kano and Eastern rail lines are among the projects to be prioritized by the Fund. The aim is to ensure the modernization of transportation networks, fostering interconnectivity between key urban centres, and facilitating the movement of goods and people with greater speed and reliability.”
He added, “President Tinubu has also approved that the Presidential Infrastructure Development Fund (PIDF) be absorbed into the new Renewed Hope Infrastructure Development Fund (RHIDF), which will successfully eliminate identified bureaucratic inefficiencies, enhance domestic and external counterpart funding opportunities, and expedite project delivery timelines for the benefit of the Nigerian people.
“As the major infrastructural enabler of his global push for foreign direct investment across sectors, the President has further directed that the projects funded under the Renewed Hope Infrastructure Development Fund (RHIDF) reflect an equitable national spread, such that every Nigerian is impacted by the initiatives of his administration in the most qualitative fashion possible.”