The Minister of Finance, Mrs. Kemi Adeosun has reiterated the
Federal Government resolve that infrastructure development will drive economic
growth, thereby creating jobs and wealth, reports ITRealms.
Speaking at the United Capital launch of its Eurobond and
Wealth for Women Funds, Thursday, Adeosun said that infrastructure development
will play a fundamental role in unlocking Nigeria’s economic potential, laying
a foundation for economic competitiveness and long-term future growth.
She stated that Investment in critical infrastructure across
the country will unlock job and wealth creation and strengthen economic
development across all States in Nigeria.
Other speakers represented at the event included Tony O.
Elumelu, Chairman of Heirs Holdings, Toyin Saraki, Wife of the Senate
President, and Erelu Bisi Fayemi, President, African Women's Development Fund.
While speaking on the outlook for the Nigerian economy, the
Minister noted that the Government is committed to increasing capital spend on
critical infrastructure across key areas; power, rail, roads and water which
will underpin growth in priority sectors especially Agriculture and
Agro-Allied, Solid Minerals, Manufacturing, and Power. “We will now target 30%
of Government expenditure on infrastructure, up from 10 per cent”.
According to her, the Federal Government will mobilise
private capital to complement Government spending on infrastructure.
“We recognise that Government spending alone will be
inadequate to bridge the infrastructure gap and we have started engaging the
private sector through our housing fund and the road trust fund for which
fundraising is in progress” she said.
Further Adeosun explained that the Government’s debt
strategy is an essential part of this process.
“Today, our debt profile is
un-balanced. We borrow heavily domestically, with too short a tenure, and at a
high cost. The impact of this is that we
spend too much on interest and we crowd out the private sector from borrowing
to fund their investment plans. This debt structure does not support our long
term growth ambitions, and so it must be amended. We need longer term and
cheaper finance to support the infrastructure investments we must make” she declared.
Maintaining that FG expects infrastructure development to
underpin the return to inclusive and sustainable growth in Nigeria
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