The Federal Executive Council (FEC) has given the green light to establish the Renewed Hope Infrastructure Development Fund (RHIDF) aimed at tackling the country’s substantial $878 billion infrastructure shortfall.
Following the FEC meeting chaired by President Bola Tinubu, Dr. Zacch Adedeji, the Special Adviser to the President on Revenue and Chairman of the Federal Inland Revenue Service (FIRS), revealed that the Fund will be administered under the Presidency.
Adedeji highlighted that Nigeria’s National Integrated Infrastructure Master Plan projected a staggering infrastructure expenditure of $878 billion from 2016 to 2040, averaging $35 billion annually. Given the limitations of relying solely on revenue from the oil and gas sector, innovative financing mechanisms like the RHIDF are essential. This Fund represents an enhancement of the previous Presidential Infrastructure Development Fund.
Throwing more light on the Fund, Adedeji said: “How do we sustainably mobilise resources to actually fund development of the country. And what we have observed is that we need national infrastructure backbone to get this done.
“If you look at the analysis of the integrated master plan that was commissioned in 2020, we will require $895 billion in the next 10 years to actually bridged the gap of infrastructure problem that we have.
“For us to do that, it requires that we think outside the box and compare what has worked elsewhere, whether within our country or in other advanced countries that we are actually proud to be associated with.
“In coming up with this, in the wisdom of Mr President and the magnanimity the council, they approved the establishment of Renewed Hope Infrastructure Fund, as the catalyst to drive our infrastructure agenda.
“So, innovative fund consolidates existing resources to drive economic growth and connectivity across sectors like transport, agriculture, aviation and education and others. It helps for inclusive progress leaving no community behind and this is expanding the initial Presidential Infrastructure Development Fund that we have.
“This Renewed Hope Infrastructure Development Fund unifies efforts streamline the projects delivery for maximum impact, it accelerates infrastructure development, sparking economic dynamism nationwide.
“The key objective of the fund is to invest in nationally critical projects in sectors that will promote growth, enhance local value addition through backward, forward and parallel linkages, create employment opportunities, promote technological innovation, promote exports.
“Potential sectors for focus, like I said, will be agriculture, energy technology, infrastructure, healthcare and education. However, these ones I’ve mentioned are just indicative of what we do.
He emphasized the necessity of mobilizing sustainable resources to address the country’s development needs, stressing the importance of a robust national infrastructure backbone. The RHIDF aims to consolidate existing resources to drive economic growth across various sectors such as transportation, agriculture, aviation, and education, ensuring inclusive progress and expanding on previous initiatives.
The RHIDF aims to invest in critical national projects across sectors to stimulate growth, create employment opportunities, promote technological innovation, and enhance exports, with a focus on agriculture, energy technology, infrastructure, healthcare, and education.
The strategic focus will initially prioritize road, rail, and agricultural infrastructure, along with ports revitalization and aviation enhancement. The goal is to establish an innovative infrastructure investment vehicle to attract capital and execute key national projects, ultimately bridging the infrastructure gap and laying a foundation for food security, industrialization, and revenue mobilization.
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