| Nigeria Economy |    1842 VIEWS  |
| Nigeria Economy | |
| 1842 VIEWS | |
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Friday, December 07, 2019 / 5:00 PM / Ottoabasi Abasiekong for Proshare WebTV / Header Image Credit: WebTV
Nigeria's productivity hinges on a robust infrastructural framework that
can drive efficiency. The Chairman of Proshare, Mr. Olufemi Awoyemi, said
this as a keynote speaker at the second edition of the Nigeria Infrastructure
Development Awards, NIDA in Lagos.
While speaking on the theme "Creative Options of Funding Infrastructure
Development in Nigeria," Mr. Awoyemi said that one of the challenges the
country faces was the absence of accurate information. He also pointed out that
uncertainty about the precise size of the infrastructure gap in Nigeria made
planning a nightmare.
He observed that evidence-based information on Nigeria's infrastructure
requirements would create room for an adequate policy framework and masterplan
to compel sustainable growth and development.
Mr. Awoyemi reiterated the need for a framework that creates a
distinction between bankable and unbankable projects in the country.
Speaking further, the financial analyst stressed that investment in
infrastructure is not an asset class, but a long-term commitment to capital
formation.
Giving some analysis, he said the global infrastructure financing gap
stood at about $2.7trn, while the emerging economies have, in the last three
years, attracted about $335bn in terms of direct investments.
He outlined the "ALS" principle in infrastructure development, which
relates to Assets, Lifecycle and the Sovereign.
In respect to Assets, there are core assets like roads, bridges, rails,
new technologies, new technologies and the Greenfield (windmill, solar,
renewable)
Lifecycle: The Lagos-Ibadan expressway is one project that defines a
lifecycle that has spanned over four decades.
Sovereign: Under the sovereign, there is the delineation between
Developed and Developing Economies, and there is a challenge that people don't
understand that there is a mismatch between opportunities and capital.
He highlighted the following as the major ways developing economies like
Nigeria fund infrastructure;
In investing in infrastructure, financiers, according to him, are only
worried about the risk and return on their capital.
He raised the need for Nigeria to identify the key projects that it
needs, more airports, rails, roads or ports.
According to him, it was important for Nigeria to address the productivity issue through its infrastructure because it will reduce the cost of overall production.
The analyst made a strong case for investments in research and
development, which is a critical component of infrastructure in any progressive
environment.
In his opening remarks, the Chairman of the Nigerian Infrastructure
Development Awards Committee, Mr. Lanre Alabi, said that the event was
organised to honour firms and government agencies that had contributed to
infrastructural development in the country.
He said NIDA was committed to recognizing innovative efforts and strides
towards funding infrastructure.
The Federal Road Management Agency, FERMA, Nigeria Communications
Commission, NCC, and the Central Bank of Nigeria (CBN) emerged winners.
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