Infrastructure Dev’t Panacea For Economic Growth – Adeosun
Kemi Adeosun, Minister of Finance[/caption]
The Minister of Finance, Mrs. Kemi Adeosun said Thursday that infrastructural development will play a vital role in creating job and boost economic growth across the country.
Adeosun in a statement signed by her Special Adviser on Media, Festus Akanbi and made available to The Whistler argued that adequate investment made in infrastructure will unlock Nigeria’s economic potential and secure the country’s long-term future growth.
The minister, who was speaking at the United Capital launch of its Eurobond and Wealth for Women Funds, in Lagos, reiterated the Federal Government’s commitment for increased capital funding across critical infrastructure sectors of the economy.
The sectors according to the her include, power, rail, roads, Agriculture and Agro-Allied, Solid Minerals, Manufacturing and Power.
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In addition, Adeosun said the government will mobilise private capital to complement spending on infrastructure.
“We will now target 30% of Government expenditure on infrastructure, up from 10%,” she said.
“We recognise that Government spending alone will be inadequate to bridge the infrastructure gap and we have started engaging the private sector through our housing fund and the road trust fund for which fundraising is in progress.
“Today, our debt profile is un-balanced. We borrow heavily domestically, with too short a tenure, and at a high cost. The impact of this is that we spend too much on interest and we crowd out the private sector from borrowing to fund their investment plans.
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“This debt structure does not support our long term growth ambitions, and so it must be amended. We need longer term and cheaper finance to support the infrastructure investments we must make.
“We expect infrastructure development to underpin the return to inclusive and sustainable growth in Nigeria,” the minister added.
Other speakers represented at the event includes Tony O. Elumelu, Chairman of Heirs Holdings, Toyin Saraki, Wife of the Senate President, and Erelu Bisi Fayemi, President, African Women’s Development Fund.
