Economy
SOME experts on Tuesday called for the Public-Private Partnership (PPP) funding model to address Nigeria’s infrastructural constraints for advancement in intra-African trade and export diversification.
The experts gave the advice at a webinar organised by Arbiterz Media Ltd with the theme: “AfCFTA: Revamping Nigeria’s Infrastructure for Global Trade.”
They noted that addressing the country’s infrastructural gaps through the PPP would also boost its competitiveness in the Africa Continental Free Trade Area (AfCFTA) and globally.
Mrs Tariye Gbadegesin, the Managing Director, ARM-Tarith Infrastructure Fund, said national infrastructure across ports, inland hubs, rail, roads among others, were necessary to upscale the manufacturing sector.
She, however, noted that the cost of transportation, power, logistics; factors fundamental to production and competitiveness were high, impacting on the end cost of production.
Gbadegesin urged for the development of transport corridors and the designing of a rail network that supports trade more than passenger commuting.
“There are increasing opportunities to support the emergence of a manufacturing or commercial class in Nigeria and this calls for partnership between private and public sector to fund infrastructure.
“You need infrastructure to upscale across the board and as an equity fund, we are happy to invest in the PPP.
“The transport corridors need to be developed and we are looking at large scale ports infrastructure.
“Inland port would be viable when you have a viable rail transportation system that connects from ports to land,’’ she said.
Mrs Yewande Sadiku, the Executive Secretary of, Nigerian Investment Promotion Commission, said the funding models need to be reflective of an inclusive job creation perspective.
Sadiku noted that given the current precarious realities of government’s expenses, a derisking model position in the PPP model would be a better stand for the government.
She said that the private sector needed to be taken from the fringes to the centre in an approach that is more inclusive.
“Government is better positioned at derisking but they cannot fund infrastructure alone given the current realities of its expenses while the private sector needs to be taken from the fringes in an approach that is inclusive,’’ she said.
Mr Emmanuel Assiak, the acting Chief Executive Officer, Fund for Development in Africa, who noted that Africa’s Gross Domestic Product (GDP) was closely tied to the commodity cycle said it ranked lowest in export diversification and manufactured value addition.
Assiak listed gaps in the African trade ecosystem to include structural, funding, financing and sectoral.
He stressed the need to address the soft and hard infrastructural constraints to engender the advancement of intra-African trade and export diversification.
“Debt funding is not enough to address these critical gaps.
“We need to develop a diverse pool of funding sources to finance Africa’s growth and increase the share of equity instruments in the African funding mix,’’ he said.
Mr Abba Bello, the Managing Director, Nigerian Export-Import Bank, (NEXIM), pledged the bank’s support to provide export credit, facilities, guarantee and insurance to promote trade.
Bello, represented by Mr Hope Yongo, Technical Adviser, said redefining and strategising export and investments guarantee instrument would address the challenges impacting intra-African trade on primary agriculture produce.
Bello called for a national quality infrastructure framework to reduce the rejection of Nigerian commodities in intra-African trade.
“NEXIM is committed to promoting the introduction of factory services in Nigeria for the promotion of trade.
Currently, we have the Bill before the National Assembly,’’ he said.
Segun Awolowo, the Chief Executive Officer, Nigerian Export Promotion Council (NEPC) stressed that Nigeria must and could survive in a world without oil.
Awolowo tasked players in the private sector particularly the Micro, Small and Medium Enterprises (MSME) to key into the NEPC Export Expansion Facility Programme to drive exports and reduce dependence on oil.
“This facility programme provides export development fund, market development initiatives, capacity building, export aggregation and trade facilitation.
“It serves to penetrate 22 identified export markets, facilitate production certifications, and assist in funding businesses amongst others,’’ he said.
Mr Andrew Nevin, the Chief Economist, Pricewaterhouse Coopers Nigeria, expressed concerns about the debt relationship between China and African countries.
“It is very important to try to de-emphasize commercial relationship with just one Bloc or trading partner and have economic and social relationships with other blocs,’’ Nevin said. (NAN)
– May 25, 2021 @ 18:55 GMT
Tags: Experts advocate PPP finance model for infrastructure development
