Connect with us
Polaris bank
Fidelity ads
Stallion ads

Business News

Nigeria needs $100 billion annually to fix infrastructural deficit – Finance Minister 

Nigeria needs an estimated sum of $100 billion or N36 trillion annually to address the infrastructural decay in the country. 



Zainab Ahmed, N24.9 trillion debt, FG to borrow N1.7 trillion to finance 2020 budget – Finance Minister , VAT Increment: Afrinvest exposes sharing formula of N479.7b expected revenue , Nigeria’s VAT Increase: Penny-Wise, Pound Foolish, Nigeria spends N1.11 trillion to service debt in half year 2019 , Nigeria needs $100 billion annually to fix infrastructural deficit – Finance Minister , Oil: Nigeria makes N5.4 trillion in 1 year , FG secures World Bank’s approval to borrow $3 billion , debt, FG to develop new economic development plan Vision 2040 , Nigeria’s infrastructure gap: Too little too late? , Again, Finance Minister argues that Nigeria is not in debt distress , FG defends $22.7 billion new loans from World Bank, others  , Finance Minister wants investors to curb Nigeria’s medical tourism through health investment

Nigeria needs an estimated sum of $100 billion or N36 trillion annually to address the infrastructural decay in the country.  

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, reportedly disclosed this on Monday at a workshop on ‘Maximizing finance for the development of infrastructure in Nigeria’, organised by the World Bank Group in Abuja. 

[READ MORE: Nigeria spends N1.9 trillion on goods from China in H1, up by 88%]

The details:  According to the minister, the Federal Government will require about $100 billion annually for the next 30 years to effectively tackle Nigeria’s infrastructure challenges. Mrs Zainab further stated that with the shortfall in oil revenue, which has plummeted in recent times, it is difficult to address infrastructural deficit.  

 “Nigeria requires an estimated sum of $3tn to bridge its infrastructure gap over a 30-year period. This amounts to roughly $100bn per year, with a total federal budget of less than $30bn for 2019 and the dependency of Nigeria’s income on oil revenue with unpredictable global price fluctuation, Nigeria no doubt lacks the fiscal space to self-finance the required infrastructure investment,” the minister stated.  


Speaking further, she said the time had come for the government to start looking for alternative sources of funding infrastructure as budgetary funding alone could not address the funding gap. 

World Bank’s Interventions: Meanwhile, while the World Bank acknowledged that Nigeria faces a $100 billion annual investment gap in infrastructure, the bank has pledged to assist Nigeria close the infrastructure gap.  

According to Mr Hafez Ghanem, the World Bank Vice President for Africa, the bank can, together with the private sector, leverage government resources to bridge infrastructure gaps in Nigeria. 

“We have supported and seen success in transport, energy and power sectors using Public-Private Partnerships (PPPs) models. The Azura power project is an example of how we have attracted private sector investment in the power sector.  

“We are happy to work with the Government of Nigeria on power sector reforms, which will create a better environment to attract more private sector financing,” Ghanem said. 

Mr Sérgio Pimenta, Vice President of IFC (a sister organization of the World Bank) for the Middle-East and Africa, said that private sector resources and expertise could go a long way in bridging the gap. 

“In Sub-Saharan Africa, we are increasingly seeing the private sector design sustainable business models that are creating jobs and lifting people out of poverty. The World Bank Group’s institutions will work together to mobilise a range of financing solutions (both private and public) for projects in developing countries,” he said.  

[READ ALSO: Energy: Nigeria to receive $500,000 grant]

Coronation ads

What it means: Last week, Nairametrics reported that Nigeria approached the World Bank for another loan to the tune of $2.5 billion or N767.3 billion in a new tranche of concessionary lending. According to the report, World Bank Vice President for Africa stated this in an interview. 

Polaris bank

Huge infrastructural gap in Nigeria still persists, and all indications point to the fact that Federal government of Nigeria may still settle for further loans from the world bank to brighten any chance of bridging the age-long infrastructural decay.  


Jaiz bank ads


Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Economy & Politics

BREAKING: Buhari sacks Service Chiefs, appoints new

President Buhari has appointed new Service Chiefs to replace the former with immediate effect.



PIB; Will the jinx be broken this time around?, President Buhari may sign 2020 Budget tomorrow, President Buhari approves N37 billion for National Assembly renovation, President Buhari appoints Sarki Auwalu to head DPR , FG may stop interstate and inter-town travels, COVID-19: President salutes Elumelu, Dangote, Atiku, Banks, others for support, Naira export earnings, Covid-19: FG to set up N500 billion intervention fund, sovereign wealth, FG issues guidelines on implementation of gradual easing of lockdown nationwide, Electricity: FG approves one year waiver of import on meters, Buhari backs Lagos State Government Judicial Panel of Inquiry

President Muhammadu Buhari has appointed new Military Service Chiefs, and congratulates the outgoing Service Chiefs for efforts of “enduring peace to the country.”

This was disclosed by Presidential media aide, Femi Adesina in a social media post on Tuesday. President Buhari has been urged by the National Assembly to sack Service Chiefs over rising insecurity in the county.

Adesina said: “PMB appoints new Service Chiefs. Maj Gen LEO Irabor, CDS, Maj Gen I Attahiru, Army, Rear Adm AZ Gambo, Navy, AVM IO Amao, Air Force. He congratulates outgoing Service Chiefs on efforts to bring enduring peace to the country.”

“I have accepted the immediate resignation of the Service Chiefs, and their retirement from service. I thank them all for their overwhelming achievements in our efforts at bringing enduring peace to Nigeria, and wish them well in their future endeavours,” Buhari disclosed in a separate statement.


What you should know: President Buhari had come under heavy criticism in the last couple of years over his failure to sack the Service Chiefs for failing to tackle insecurity in the country.

Continue Reading

Macro-Economic News

BREAKING: CBN retains MPR at 11.5%, holds other parameters constant

The CBN voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5% and other parameters constant.



CBN forex restrictions on food itemsCBN approves new cheque standard for banks

The Monetary Policy Committee (MPC), of the Central Bank of Nigeria (CBN), has voted unanimously to retain the Monetary Policy Rate (MPR) at 11.5%

This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday 26th January 2021.

Other parameters such as Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor remain unchanged.

Highlights of the Committee’s decision

  • MPR retained at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • While Liquidity Ratio was also kept at 30%

More details shortly…


Continue Reading


FG says N10 billion disbursed funds not only for Covid-19 vaccines

FG has clarified that the N10 billion it earlier disbursed was not only for the development of Covid-19 vaccines.



Nigeria might fall into recession - Budget Office, FG not enjoying dividend of trillions spent on CBN, NPA, other MDAs - Akabueze

The Ministry of Finance, Budget and National Planning has said that the N10 billion it released for vaccine development is not only for the production of Covid-19 vaccines.

This was disclosed by the Director-General of the Budget Office, Mr. Ben Akabueze, representing the Finance Minister during a meeting with the National Assembly Joint Committee on Health on Monday, reported by NTA.

Following the announcement of the disbursement of the sum of N10 billion to the Ministry of Health for the development of Covid-19 vaccine, the Joint Committee scheduled a meeting with the Ministers of Finance and Health for clarifications on the funds.

“The joint committee is invited to note that N10 billion has been released, to the Federal Ministry of Health under the budgetary vote referenced in above,” Akabueze said.

Ibrahim Oloriegbe,  Chairman, Senate Committee on health, said the Committee wanted to know what the use of the funds was for and urged against the implementation of a lockdown.


“We got to see that what was released was in line with what was already there, for preparing the country for all other vaccines arrangements

“So our economy, we only need to live with covid, we cannot with due respect, contaminate Nigeria with a lockdown, it will badly affect our economy,” Oloriegbe said.

The committee also said the total aim is to see how Nigeria can develop its capacity towards the development of vaccines,

The Joint Committee, therefore, resolved that the Minister of Health who was absent at the meeting should appear before it on Tuesday for a breakdown on the proposed use of the funds.

What you should know: Nairametrics reported last week that the Federal Government, through the Ministry of Finance, announced the sum of N10billion for the production of vaccines in Nigeria, to fight the coronavirus.

Continue Reading