Nigeria’s Minister of Finance Kemi Adeosun has said that the Nigerian Government is planning to set up a $25bn fund dedicated to infrastructure investments.
Speaking at the inauguration of the Capital Market Master Plan Implementation Council, the National Investor Protection Fund and launch of the Corporate Governance Scorecard by the Securities and Exchange Commission on Thursday, the minister said that the decision to set up the fund for infrastructure was in recognition of the critical role of the capital market to the kind of economy the present administration intends to develop for Nigeria.
The minister, who was represented at the event by the Permanent Secretary, Ministry of Finance, Dr. Mahmoud Isa-Dutse, said: “In the current environment of significant revenue squeeze and other budgetary constraints, these investments will clearly not come from government coffers alone.
“We believe this is where the capital market can really make itself relevant by stepping in to close the funding gap. Government is already looking to set up a $25bn fund wholly dedicated to infrastructure investments.”
The minister challenged the capital market community to come up with other innovative ways of mobilising the funds needed to address the country’s infrastructure challenge.
She added that an efficient and vibrant capital market was an indispensable feature of any modern economy, supplying affordable medium to long-term capital needed for growth.
According to the minister, capital markets do facilitate the mobilisation of savings, accelerate capital formation, provide investment avenues and enhance efficient allocation of capital to growth sectors.
“Nigeria needs and deserves a capital market that is characterised by high levels of liquidity, depth, breadth and sophistication to enable rapid socio-economic development.
“Going through the (capital market) master plan, it is heart-warming to note that this is the type of capital market you envision for our country, and indeed, we desperately need such a market to emerge in order to tackle Nigeria’s biggest challenges of huge infrastructure deficit and unacceptable level of unemployment,” she added.