FG to increase $14 billion take-off capital for Renewed Hope Infrastructure Development Funds – Presidency
Bayo Onanuga, Special Adviser to the President on Information and Strategy, has announced that the federal government will raise a total of $14 billion in take-off money for the newly created Renewed Hope Infrastructure Development Funds.
Take-off capital is the first funding required to establish a firm or launch a new initiative, often known as “start-up capital” or “seed capital.”
The Renewed Hope Infrastructure Development (RHID), authorised by the Federal Executive Council (FEC) on Monday, March 25 in Abuja, intends to address the country’s infrastructure deficit.
According to the presidency, Nigeria will need to spend $35 billion each year until 2040 to address its infrastructure needs.
The federal government stated that the RHIDF is intended to supersede the Presidential Infrastructure Development Fund (PIDF), which was established by former President Muhammadu Buhari.
The administration stated that its goal is to improve infrastructure and economic growth countrywide by focusing on critical national projects.
The federal government has stated that the RHIDF aims to generate a total of N20 trillion in revenue to address the country’s infrastructure deficit.
“As designed, it is a game-changing, inventive, and transformative fund that will spur economic growth in road and rail construction, agriculture, aviation, education, health, energy, and technology.
“It will offer the elixir for vital national initiatives that will speed up infrastructural and economic growth across the country.
“With eyes on raising N20 trillion, about $14 billion take-off capital, the Fund will support projects that will promote growth, enhance local value-addition through backward, forward and parallel linkages,” the president said.
RHIDF will target rail projects around the country.
Furthermore, the federal government stated that the fund will be utilised to support train projects around the country.
The government stated that the programme will focus on major transit projects such as the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Motorway, and the Lagos-Kano and Eastern Rail Lines.
Furthermore, President Tinubu allegedly claimed that the Fund will be administered by a Director-General and based in the Presidency.
According to Tinubu, this approach is meant to avoid the bureaucratic roadblocks that often impede the implementation of good projects.
“For instance, a core focus of the Fund will be to enhance the agricultural value chain to boost food security.”The Fund’s fortification of agricultural infrastructure will cut post-harvest losses and enhance food supply networks.
“Among the projects under consideration are significant road networks such as the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Motorway, the Lagos-Kano and Eastern Rail Lines. “Ports and aviation facilities will be modernised,” the president stated.
sources of capital for the fund
The presidency stated that the Fund aspires to attract investment funds from a larger range of sources than the PIDF.
“It targets Pension Funds, Concessionary Loans, Insurance companies, sovereign wealth funds, private sector arms of multilateral development institutions, and bilateral private sector investors.”Individual investors, particularly Nigerians in the Diaspora, endowments, and equity funds are also potential sources of funding, according to the statement.