Earlier this month, President Muhammadu Buhari approved the establishment of a Presidential Infrastructure Development Fund (PIDF) with seed funding of $650m from the Nigeria Liquefied Natural Gas (NLNG) Dividend Account as approved by the National Economic Council (NEC).
The fund will be managed by the Nigeria Sovereign Investment Authority (NSIA) and invested specifically in critical road and power projects across the country. According to the Presidency, this initiative aims to eliminate the risks of project funding, cost variation and completion that have plagued the development of the nation’s critical infrastructure assets — such as the 2nd Niger Bridge, Lagos to Ibadan Expressway, East-West Road, Abuja to Kano Road, Mambilla Hydroelectric Power — over the last few decades.
This commitment by the President and NEC, allows all State Governments to own an economic interest in the project companies that will be professionally developed and managed by the NSIA. The PResidency explained that the investments will yield returns, which will diversify revenues to States, improve the fiscal sustainability profile of the Federation and ensure Nigerians benefit from modernised Infrastructure for decades to come. The PIDF will secure counterpart funds required for projects being co-developed with China Exim and China Development Banks, and mobilize any additional funding required from development partners.