According to a recent statement from the Presidency, an estimated $35 billion will be required each year to meet the country’s Infrastructure needs over the next 16 years. The Special Adviser to the President on Information and Strategy, Bayo Onanuga, revealed this in a statement themed ‘What the Renewed Hope Infrastructure Fund Means’. The announcement states that the funds will be allocated annually to Finance infrastructure projects between 2024 and 2040. The explanation provided details about the inner workings of the Renewed Hope Infrastructure Funds introduced by President Bola Tinubu.
Given the story’s background, former President Muhammadu Buhari set up the Presidential Infrastructure Development Fund (PIDF) after recognising that the government could not afford the notable cost, utilising the National Sovereign Wealth Authority in a critical capacity. The PIDF played a crucial role in bringing vital projects like the Lagos-Ibadan Expressway and the Second Niger Bridge to achievement. However, the PIDF encountered financial limitations that resulted in project completion delays, increased material expenses, and challenges related to bureaucracy and institutions.
Various industries will be revolutionalised by the funds.
President Bola Tinubu’s Renewed Hope Infrastructure Development Fund (RHIDF) has received the full support of the Federal Executive Council after its approval on March 25th. This fund aims to address the existing challenges by focusing on infrastructure development. To boost economic growth, the fund is designed to revolutionise various industries, including road-rail construction, agriculture, health, aviation, energy, Education and technology. This will act as a vital resource for important national initiatives, speeding up the progress of infrastructure and Economic Growth across the nation.
Similarly, the fund aims to raise ₦20 trillion, equivalent to $14 billion, to provide financial support for projects that drive economic growth and increase the value of local industries by strengthening connections in all parts of the supply chain. The fund’s primary objective is to strengthen the agricultural value chain to improve food security, which will, in turn, lead to the creation of new job opportunities and increased Export opportunities. Lastly, the fund aims to decrease post-harvest waste and enhance food distribution networks by enhancing agricultural facilities.
Infrastructure funding includes individual investors and equity funds.
The projects will improve large transportation networks like the Sokoto-Badagry Expressway, Lagos-Calabar Coastal Highway, and rail lines connecting Lagos to Kano and the Eastern region. Plans are also in place to upgrade ports and Aviation infrastructure. The fund is expanding its scope to attract more Investment capital than the PIDF. Pension Funds, Concessionary Loans, sovereign wealth funds, Insurance companies, Private Sector arms of multilateral development institutions, and bilateral private sector Investors are all focused on this initiative.
Additional funding options include individual investors, such as Diaspora Nigerians, endowments, and equity funds. During the Federal Executive Council meeting, President Bola Tinubu detailed the reasoning behind the fund’s conception before its approval by council members. The fund will efficiently implement beneficial projects by bypassing bureaucratic challenges and overseen by a director-general within the presidency. During his time as Governor of Lagos in 2004, he mentioned the establishment of the Lagos Metropolitan Area Transport Authority (LAMATA) as one of his achievements.
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Moreover, this agency was responsible for overseeing the development of two railway lines and played a key role in constructing vital road networks within the city. The Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, received commendation from the Council members for several of his presented initiatives. President Tinubu aims to create a lasting impact through policies addressing social and economic issues. This includes initiatives like student loans, Unemployment benefits, and access to consumer credit.