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.
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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.
- “As conceived, it is a game-changing, innovative and transformative Fund that will drive economic growth in road, rail construction, agriculture, aviation, education, health, energy and technology.
- “It will provide the elixir for critical national projects that will accelerate infrastructure and economic development in all parts of the country.
- “With eyes on raising N20 trillion, about $14 billion take-off capital, the Fund will support projects that will promote growth, enhance local value-addition through backward, forward and parallel linkages,” the presidency noted.
RHIDF to target Rail Projects across 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.
- “For instance, a core focus of the Fund will be to enhance the agricultural value chain to boost food security.
- “By fortifying agricultural infrastructure, the Fund will ensure that post-harvest losses are reduced, and food supply chains strengthened
- “Among the projects being targeted are major road networks, such as the Lagos-Calabar Coastal highway, Sokoto-Badagry Expressway, Lagos-Kano and Eastern Rail Lines. Ports and aviation facilities will be modernized,” the presidency noted.
Sources of Capital for the Fund
The presidency highlighted that the Fund aims to attract investment capital from a broader range of sources compared to the PIDF.
- “It targets Pension Funds, Concessionary Loans, Insurance companies, sovereign wealth funds, private sector arms of multilateral development institutions, and bilateral private sector investors.
- “Other financing sources are individual investors, including the Diaspora Nigerians, endowments and equity funds,” the statement reads.
In case you missed it
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.
- Zacch Adedeji, Chairman of the Federal Inland Revenue Service, disclosed this information subsequent to the 4th FEC meeting of the year.
- According to the FIRS chief, this effort aims to bridge the infrastructure gap of over $858 billion, which has been an obstacle to national growth.
- Adedeji said that the fund aims to resolve the common concerns of legitimate investors about having a semi-governmental structure to ensure the security of their investments.
