President Muhammadu Buhari has assured investors that his government is doing what is necessary to make Nigeria a viable investment destination for them.
Buhari disclosed that one of the ways his government has done this is by making the Transmission Company of Nigeria (TCN) financially viable to provide more electricity for the country and for investors.
The president, who was represented by Ibrahim Gambari, his chief of staff, said Nigeria needs N298.3 trillion from private sector players to achieve the objectives set out in the National development plan.
“As you may be aware, Nigeria’s National Development Plan (2021 – 2025) was formulated against the backdrop of several subsisting development challenges in the country and the need to tackle them within the framework of medium and long-term plans,” he said.
“This all-encompassing plan aims to generate 21 million full-time jobs and lift 35 million people out of poverty by 2025, thus setting the stage for achieving the government’s commitment of lifting 100 million Nigerians out of poverty in 10 years.
“To attain the objectives of the National Development Plan (2021 – 2025), we estimate that we would require an investment commitment of about N348 trillion.
“Government capital expenditure during the period will be N49.7 trillion (14.3 percent) while the balance of N298.3 trillion (85.7 percent) is expected from the Private Sector. Of the 14.3 percent government contribution, FGN capital expenditure will be N29.6 trillion (8.5 percent) while the Sub-National Governments’ capital expenditure is estimated to be about N20.1 trillion (5.8 percent).
“The successful implementation of this Plan will therefore, be heavily dependent on strong partnerships between the private and public sector, both within and with Development Partners outside Nigeria.”
Speaking about the challenge of electricity, Buhari said the Presidential Power Initiative will provide electricity for 40 million people in the country.
“The first phase of the Presidential Power Initiative will provide over 40 million people with more reliable electricity supply, create 11,000 direct and indirect jobs for Nigerians,” he added.
“This will be from power system engineers to electricians and contractors, and this will in turn improve the standard of living while providing homes and businesses with constant, reliable, and affordable electricity supply.
“You may also wish to note that at the commencement of this Administration, N200 billion was paid for stranded power to service existing liabilities. Contract terms in Power Purchase Agreements were changed from “Take or Pay” to “Take and Pay.”
“Similarly, the Distribution Companies were made to use banks for bill collections – prior to this, Transmission Company of Nigeria was getting only 50% of proceeds. Now, TCN is financially viable and can invest in its own infrastructure.”
Buhari said his administration also provided sovereign guarantees for vital infrastructure projects in the country.
The president added that “the Federal Government of Nigeria has always recognized security as another critical element in the flow of investment and overall economic and infrastructural development anywhere,” committing to solve Nigeria’s security challenges.