The Bureau of Public Enterprises, BPE, Director General Mr. Alex A. Okoh, has declared that Nigeria needs $3 trillion investments in 30 years to bridge infrastructure, and in other words $100 billion annually.
He said the only way to correct the infrastructure gap is for the Federal Government’s next phase of the Reform and Privatisation Programme to focus on Public Private Partnerships, PPPs.
According to e-Nigeria! Okoh made the infrastructure gap revelation in a statement from the BPE on Wednesday, when he received a delegation from the World Bank led by the senior Economist (Economics and Private Sector Development), Mr. Volker Treichel which visited the Bureau in Abuja recently.
Represented by Director, Infrastructure and Public Private Partnership Department of the Bureau, Mallam Sanusi Sule, the Director-General said the new phase targets reforms mostly in the utility and infrastructure sectors which include; water resources, railways, airports and highways.
He said the need for refocusing on PPP was borne out of the increasing lack of fund for building new infrastructure and effectively maintaining existing ones, regretting that Nigeria has lots of deteriorating infrastructure – dilapidated roads, schools, hospitals, among other higher public expectations in terms of efficiency and effectiveness of infrastructure service delivery.
He maintained that infrastructure stock was too low for any meaningful development and that “the public sector cannot afford to provide the resources to bridge the huge infrastructure gap”.
He revealed that the most feasible option is to attract private sector investments, and the BPE is working tirelessly with key stakeholders to come up with a robust framework and process for implementing and managing PPPs in the country.
Leader of the delegation, Mr. Volker Treichel said the visit was part of the World Bank private sector diagnostic assessment of the public sector in Nigeria.
He said that the Bank was exploring ways to provide short term assistance to the Bureau in the next three years.