Governor Central Bank of Nigeria, CBN, Mallam Lamido Sanusi, has identified non-availability of long term funds and harsh economic environment as major impediment to infrastructure financing in Nigeria.
Meanwhile President Goodluck Jonathan, GCFR, has again given kudos to the initiatives of the Central Bank of Nigeria (CBN), aimed at addressing the infrastructural gap in Nigeria.
The President, who, was the special guest of honour at the Infrastructure Finance Conference organized by the CBN, on Monday at Abuja with the theme, “Infrastructure Financing in Nigeria: The Way Forward; said that the initiatives of the Bank have in no small measure addressed the huge challenges confronting the nation and added that such proactiveness has provided a roadmap for resuscitation of critical infrastructure.
He noted that the present administration appreciates the key role of infrastructure in economic development of the country, hence, “concerted efforts are being made to reverse the decay”. President Jonathan, who was represented by the Honourable Minister of Finance, Dr. Olusegun Aganga, however, noted that “government sources are not enough to finance infrastructural development, as such the options of ‘Public, Private Partnership’ (PPP) and ‘Build, Operate and Transfer’ (BOT) are being explored.
He also gave the assurance that the government shall continue to create conducive environment to attract foreign investments in the area of infrastructural development.
Earlier in an address, the CBN Governor, Mallam Sanusi Lamido Sanusi, CON, noted the symbiotic relationship which exists between infrastructure and economic development and decried the absence of their convergence due to poor performance of state-owned enterprises involved in infrastructural development, huge financing gap and absence of maintenace culture.
Mallam Sanusi further identified major challenges confronting infrastructure financing in Africa and indeed, Nigeria to include non-availability of long term funds, harsh economic environment, absence of risk sharing structures and lack of refinancing facility to boost liquidity for banks engaged in infrastructure financing . Other impediments to infrastructure finance according to the Governor include inadequate capacity building for stakeholders and policy reversal by government.