May 30, 2024

Renewed Hope Infrastructure Development Fund (RHIDF): An Accelerating Progress

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By Hamza Yakubu

Nigeria’s infrastructure still lags behind, with urgent attention needed to address the challenges. A 2016 study under the leadership of former President Mohammadu Buhari revealed a staggering estimate of $878 billion required between 2016 and 2040 to bridge the infrastructure gap.

Taking decisive action, the Presidency approved the establishment of the Presidential Infrastructure Development Fund (PIDF) in February 2018 to fast-track critical infrastructure projects necessary for the country’s economic growth and modernization. Entrusted with overseeing the financing and development of these projects, the Nigeria Sovereign Investment Authority (NSIA) has strategically managed the PIDF, drawing funds from various sources including Budgetary Allocations, Nigeria Liquefied Natural Gas dividends, Recovered Funds (Locally and internationally) and other third party capital.

In a significant milestone, the government commissioned an integrated Infrastructure Masterplan in 2020, highlighting the need for $895 billion over the next decade to effectively address Nigeria’s infrastructure challenges.

Despite past shortcomings in the Mohammadu Buhari administration, the strides made in infrastructure development are commendable, paving the way for a brighter future. As the baton is passed to the new administration under President Asiwaju Bola Ahmed Tinubu, the launch of the Renewed Hope Infrastructure Development Fund (RHIDF) signals a modernized approach to sustaining and building upon the success of the PIDF.

The Renewed Hope Infrastructure Development Fund is targeted at closing Nigeria’s $878 billion infrastructure gap by deploying as much as $35 billion yearly up till 2040. The fund is said to facilitate effective infrastructure development across the pivotal areas of agriculture, transportation, ports, aviation, energy, healthcare, and education. RHIDF is expected to raise financing through equity investments, budgetary allocations, special purpose vehicles (SPV), public-private partnerships (PPPs) and multilateral development financing.

President Bola Ahmed Tinubu’s initiatives deserve praise as we look towards a more infrastructure-savvy Nigeria. Let us hope that the RHIDF will serve the best interests of the nation, thwarting any attempts by saboteurs to derail our progress.

God Bless Nigeria!

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