Nigeria to tap private capital, boost spending on infrastructure

Kemi Adeosun, Nigeria’s Minister of Finance

Nigeria aims to rise the proportion of government spending devoted to infrastructure to 30 percent from 10 percent and to mobilize private capital for additional funding, Finance Minister Kemi Adeosun said in late February.

The government has laid out plans to spend a record 7.29 trillion naira in 2017, up from 6.06 trillion naira budgeted for last year, but must also find funds to cover a big shortfall in the budget resulting from lower prices for oil, its main export.

Adeosun said she was committed to boosting capital spending across key areas such as power, transport and water, which would help underpin growth in agriculture, mining and manufacturing.

“We will now target 30 percent of government expenditure on infrastructure, up from 10 percent,” she told an investor conference in the capital Abuja.

Adeosun said the government would tap private capital to complement its own expenditure, adding that fundraising was in progress for housing and road trust funds in partnership with the private sector.

Read more: Nigeria to tap private capital, boost spending on infrastructure| Reuters