The Federal Government, on Monday, May 23, said the nation would need a whooping $166 billion to meet its energy and transport infrastructure requirement over the next five years.
Transportation Minister, Rotimi Amaechi, who revealed this during a public hearing on Nigerian Railway Authority Bill and National Transport Commission Bill, said the Federal Government and General Electric (GE) have an agreement to commercialize the Lagos-Kano railway project.
“Besides privatization, government also realised a monumental infrastructure deficit which as at 2015 stood at over $3.05 trillion in 30 years or $166 billion in five years with energy and transport infrastructure taking more than 50 per cent of that need,” the Minister said.
“Transport infrastructure alone needs a whopping $50.9 billion in five years to cover the current gap in the sector, an average of $10.2 billion per year. Currently, the ratio of funding in the sector between the public and private is 9:1. This constituted a major disincentive to private sector participation in the industry.
“In addition, it is considered imperative to intimate this Committee that full government ownership and management of these agencies had inherent restrictions for third party funding, undue government interferences; burdensome bureaucratic structures and over-bloated work force among others,”Amaechi added.
