The Federal Government says it is moving toward a self-financing infrastructure model that will see major national projects like ports, roads, and solar power plants concessioned to private operators, with proceeds used to defray project-related debts.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during an interview on Arise News on Thursday, where he addressed public concerns over Nigeria’s debt strategy and economic trajectory.
“If you have a one-gigawatt solar project that is going up in the northern part of the country, once it is built perhaps with government funding, it will then be concessioned, and the returns, the tariffs paid by end users, will help to defray the cost of the debt,” Edun said.
He explained that many of Nigeria’s current loans are infrastructure-linked and are structured to be repaid over extended periods, typically between five to seven years.
“There is no such thing as a $25 billion borrowing plan over six months or even over one year,” he clarified. “What was laid before the National Assembly is project-linked borrowing in line with the Medium-Term Expenditure Framework.”
Revenue-generating projects to attract private capital
According to Edun, the government is prioritising projects that generate user fees and private sector investment. He pointed to expansion plans for Nigeria’s ports and solar projects as examples of infrastructure that can attract private capital while generating long-term revenue.
“These are revenue-generating projects. For example, the port expansion will bring in more business and user charges, which will help offset the cost of the loans,” he said.
He added that Nigeria was gradually reducing its reliance on public funds to finance critical infrastructure, with the goal of allowing private players to take over viable projects through transparent concession agreements.
“What that does is not only relieve the government of the burden of funding these projects but also creates investment opportunities, jobs, and economic growth,” the minister said.
Edun also noted that government-owned enterprises and MDAs would be more closely monitored to ensure that they remit operating surpluses, as part of a broader effort to boost non-oil revenue.
“There is a concerted effort to increase revenue by ensuring that what should be paid by federal government-owned enterprises actually comes in,” he said, adding that the government was relying on digital tools and automation to block revenue leakages.
Inflation moderating, growth targets set at 7%
On the broader economy, Edun said major distortions had been removed, allowing for greater price stability and a return to growth. He noted that food and fuel prices were easing, and inflation had started to moderate.
“Inflation is stabilising. Prices are coming down. Food prices are down. Petrol is now below N900 per litre,” he said.
Edun added that the Central Bank’s monetary policy reforms had reduced the spread between inflation and interest rates, pushing Nigeria closer to achieving real positive interest rates that support savings and capital formation.
He also spoke on recent social safety measures, particularly the implementation of a biometric and digital payment system for direct cash transfers to vulnerable citizens.
“We now have a gold standard in terms of reaching the poorest and the most vulnerable,” he said. “Each payee is uniquely and biometrically identified, and they are paid through a digital platform — whether a bank account or a mobile wallet.”
According to him, the government’s long-term anti-poverty strategy is based on inclusive growth. He stated that the Tinubu administration is targeting an annual GDP growth rate of 7% — well above the current 3.4% — in order to outpace population growth and lift millions out of poverty.
$500 million Nigeria Trust Fund relaunched at AfDB
Edun also revealed that Nigeria had committed an additional $500 million to the Nigeria Trust Fund, a special vehicle within the African Development Bank (AfDB). He said the fund remains the only trust fund in the AfDB Group and serves as a key instrument of Nigeria’s support for regional development.
Speaking from Abidjan, he also commented on the latest election for the president of the AfDB.
“Our choice for president of the African Development Bank for the next five years, Mr Sidi Ould Tah, won the election handsomely. That strategy was laid down by the President, and we were here to implement it,” he said.
He congratulated Mr Sidi Ould Tah on his recent election as the president of the AfDB, calling the victory a diplomatic win for Nigeria.