By Ossom Raphael

The Minister of Finance, Budget and National Planning, Zainab Ahmed has said that Nigeria’s economy remains largest in Africa with with over $400 billion in Gross Domestic Products (GDP).

The minister, who said this at the 21st edition of Town Hall Meeting on the achievements of the Federal Government in infrastructure development held on Tuesday in Abuja, also said that the country’s huge and growing population offer both an economic challenge and opportunity.

She noted that despite constrained revenue proceeds brought on by several multi-dimensional factors, including the global pandemic and its impact on the domestic economy, the country still boast of the largest economy in Africa.

Ahmed who pledged Federal Governments commitment to continue to prioritise spending on infrastructure, said the ministry planned to spend about N1.42 trillion in 2022.

She said: “Nigeria’s economy and population remain the largest in Africa with over $400 billion in GDP and over 200 million people. The country’s huge and growing population offer both an economic challenge and opportunity, in the light of constrained revenue proceeds brought on by several multi-dimensional factors, including the global pandemic and its impact on the domestic economy.

“Against this backdrop of challenges, this Administration has successfully implemented a range of infrastructure programmes that have had a positive impact on the lives and livelihoods of the citizenry.

“Subsequently, this Administration continues to prioritize spending on infrastructure and human capital to catalyze rapid economic development. In 2022 alone, we plan to spend about N1.42 trillion on infrastructure and N2.11 trillion on human capital development.”

Speaking further, Ahmed said that bilateral and multilateral loans financing critical infrastructure were contracted within the framework of the 2020-2023 Medium-Term Debt Management Strategy (MTDS).

According to her, the MTDS provides a guide to the borrowing activities of government in the medium-term, usually four years.

“The ministry under the International Economics Relations Department (IERD) contracts external loans on behalf of the Federal Government of Nigeria from bilateral and multilateral development partners to finance critical infrastructure.

“The Debt Management Office (DMO), in collaboration with relevant stakeholders set targets under medium-term debt management strategy.

“These includes total public debt maximum of 40 per cent from the GDP, portfolio composition of maximum 70 per cent and minimum 30 per cent and domestic debt mix with the minimum of 75 per cent and maximum 25 per cent.

“In the light of constrained revenue, proceeds brought on by several multi-dimensional factors, including the global pandemic had its impact on the domestic economy.

“Ongoing projects under the Chinese EXIM bank include the Zungeru Hydropower Plant Project funded with 984.32 million dollars and Lagos – Ibadan railway project received 1.26 billion dollars.

“The upgrading and rehabilitation of Keffi-Akwanga-Lafia Road project was funded with 460.82 million dollars, supply of rolling stock and depot equipment for Abuja light rail phase 1 project was funded with 164.91 million dollars.

“The NICTIB Phase II (Galaxy Backbone), four airports terminal expansion project phase II and ancillary works on four airports terminal expansion were funded with 328million, 208.91 million and 183.62 million dollars respectively,” Ahmed said.

The Minister acknowledged the contributions of the World Bank, African Development Bank and French Bank in funding relevant infrastructure development in the country.

She said: “World Bank funds the Nigeria electrification project, north core interconnection power transmission line and Nigeria electricity transmission and access project with 350 million dollars, 32.3 million dollars and 486 million dollars respectively.

“The African Development Bank has also funded the Nigeria electrification project, Nigeria transmission and expansion program with a total of 410 million dollars.

“French Development Bank funds the Abuja Power Feeding Transmission Scheme with 170 million dollars and Northern Corridor Transmission Line with 245 million dollars”.

The event organised by the Ministry of Information and Culture was aimed at sensitizing the impacted communities, key stakeholders, the public and the nation on the infrastructure projects and programmes undertaken by the current Administration to create the enabling environment for socio-economic growth and development.