By Adenike Lawal
The Federal Government has unveiled a new infrastructure financing model designed to curb Nigeria’s rising debt by shifting major development projects into private hands.
Finance and Economy Minister Wale Edun revealed the strategy during an interview on Arise News, explaining that the government will now concession large-scale infrastructure, such as ports, highways and solar plants to private operators once they are built with public funds.
“If a one-gigawatt solar facility is constructed in the northern region using public funds, it would subsequently be concessioned.
“The returns from user tariffs would then go directly into servicing the debt incurred for its development,” Edun said.
He clarified that only revenue-yielding projects will be prioritized under the model, which ties closely with the Medium-Term Expenditure Framework.
Loans, he said, are being structured within a 5 to 7-year window, moving away from short-term borrowing without tangible returns.
“These are not white elephant projects,” Edun stated. “The expansion of our ports, for instance, will generate user fees and drive increased commercial activity – providing both immediate and long-term revenue streams that help to repay project loans.”
The new approach, he stressed, is meant to reduce pressure on public funds while attracting foreign and local investments.
The model also allows the government to redirect its limited resources toward social services and welfare.
“There’s a deliberate effort underway to ensure that remittances from federal government enterprises are accounted for.
“Digitalization is helping us close loopholes and enforce compliance,” he added, noting plans to enforce surplus remittances from MDAs using digital tracking.
Edun reported that inflation is starting to ease following recent reforms, with food and fuel prices stabilizing. Petrol now sells for under N900 per litre, which he said reflects better market efficiency.
“Inflation is easing and we’re seeing more price stability across essential goods.
“The spread between inflation and interest rates is also narrowing, making room for real positive interest rates that support savings and investment,” he explained.
To improve welfare support, the government has rolled out a biometric payment system that ensures targeted cash transfers reach only eligible Nigerians, either through bank accounts or mobile wallets.
“This is a best-in-class approach. Every beneficiary is biometrically verified, which guarantees that only those who are eligible receive support,” Edun said.
He reiterated the Tinubu administration’s goal of achieving 7 percent annual GDP growth – more than double the current rate to outpace population growth and reduce poverty.
Meanwhile, Nigeria has reinforced its regional development role with a fresh $500 million commitment to the African Development Bank’s Nigeria Trust Fund.
Edun made the announcement in Abidjan, where he also congratulated Mr. Sidi Ould Tah on his election as AfDB President, calling it a diplomatic win backed by President Tinubu’s strategy.
