Fashola: FG to utilize infrastructure bond instrument on critical projects

By Mashe Umaru Gwamna

In its bid to fast track road and bridge projects development nationwide, the Federal Government is to utilize Infrastructure Bond Investment from finance institutions and investors.
This was disclosed by the Minister of Power, Works and Housing, Babatunde Fashola while receiving Institutional Investors, inclusive of HSBC, China group 3 and 4 led by the Managing Director of Stanbic IBTC, Dr. Damola Sogunle, in his office yesterday in Abuja.
Fashola explained that to finance road and bridge projects through Tax Relief and Islamic banking “Sukuk” cannot be enough to provide infrastructure development in Nigeria, adding that Infrastructure Bond Instrument will complement government efforts at providing the needed critical infrastructure to end users.
He stated that the inability of Nigerian government to appropriately in the past informed the present administration, channeling its energy towards economic recovery through agriculture.
Consequently, the Minister expressed the need for a reset in the housing sector in the country. “Financial establishment must stand as the vanguard of the reset” by borrowing a leaf from countries that have successfully utilized similar investment practice, such as United Kingdom”.
Fashola disclosed that the Pilot Home for the National Housing Programme of the present administration has taken off in 33 States of the federation.
Earlier, the Managing Director of Stanbic IBTC, Dr. Damola Sogunle, explained that the investors were interested in financing projects that will impact positively in infrastructure.
He added that, the visit will enable the investors in Nigeria have information and good understanding of what is happening in the Ministry and the country at large in order to make proper investment decision.