Consolidating the Progress and Achievements of President Muhammadu Buhari’s Government: Phase 2 (The massive investments of Buhari’s Administration since 2015)

The Nigeria Sovereign Investment Authority (NSIA) commenced operations in October 2012 with an initial allocation of US$1 billion in seed capital.

As provided for by the NSIA Act, NSIA’s investments are made through three distinct funds:

1. The purpose of the Future Generations Fund (FGF) is to preserve and grow the value of assets transferred into it – by investing in a diversified portfolio of appropriate growth investments – in order to provide future generations of Nigerians with a solid savings base for such a time as the country’s hydrocarbon reserves are depleted.

2. The Nigeria Infrastructure Fund (NIF) aims to invest in domestic infrastructure projects that meet targeted financial returns and contribute to the development of essential infrastructure in order to stimulate the growth and diversification of the Nigerian economy, attract foreign investment and create jobs for Nigerians. Potential areas for investments include healthcare, transportation, energy and power, water resources and agriculture, amongst others. The Authority may invest up to a maximum of 10% of the funds in NIF in social infrastructure projects, which promote economic development in underserved sectors or regions in the country.

3. The Stabilisation Fund (SF) is intended to act as a buffer against short-term macro-economic instability. The SF’s assets are therefore to be invested conservatively, striking a balance between generating a modest positive return and preserving capital in nominal terms. Given the unpredictable and short-term nature of the Fund’s potential liabilities, immediate liquidity is also required. Withdrawals from the SF will be made at the direction of the Minister of Finance, upon satisfaction of the criteria set out in the NSIA Act.

When Muhammadu Buhari became president in 2015, to address Nigeria’s infrastructure deficit, the Buhari Administration on June 29 2015 inaugurated the National Economic Council (NEC) chaired by the Vice President Prof. Yemi Osinbajo to complement the NSIA, where issues and challenges facing the development of the country, at national and sub-national levels, are discussed with a view to develop and harmonize common strategies for addressing them.
The National Economic Council was established by the provisions of the Constitution of the Federal Republic of Nigeria (1999), as amended, Third Schedule, Part I, Section 153: Sub section (18 & 19). The NEC, as one of the Federal Executive bodies, has the mandate to advise the President concerning the economic affairs of the Federation, and in particular on measures necessary for the co-ordination of the economic planning and programmes of the various Governments of the Federation.

With the establishment of the NEC, the 2016 and 2017 budgets saw the government investing a total of N2.7trillion in infrastructures, a very large and notable commitment.

In February 2018, President Muhammadu Buhari established a Presidential Infrastructure Development Fund (PIDF), under the management of the Nigerian Sovereign Investment Authority (NSIA), to finance critical road and other infrastructure projects such as the Second Niger Bridge, Lagos to Ibadan Expressway, East-West Road, Abuja to Kano Road, and the Mambila Hydroelectric Power Plant.

The PIDF is expected to mobilize from governments, the private sector, and development partners, and all the funding is directed at implementing these projects. This has happened with the active support of the States. The National Economic Council (NEC) on May 17, 2018, authorised the initial transfer of $650 million dollars to the NSIA from the Nigeria Liquefied Natural Gas (NLNG) Dividend Account, as seed funding for PIDF.

This initiative aims to eliminate the risks of project funding, cost variation and completion that have plagued the development of the nation’s critical infrastructure assets — such as the 2nd Niger Bridge, Lagos to Ibadan Expressway, East—West Road, Abuja to Kano Road, Mambilla Hydroelectric Power — over the last few decades.

The PIDF was established to secure counterpart funds required for projects being co-developed with China Exim and China Development Banks, and mobilize any additional funding required from development partners.

President Muhammadu Buhari in 2021, February approved the establishment of a Public Private Partnership styled Infrastructure company named Infra-Co with an initial seed capital of N1 Trillion.

The entity has been developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria.

The initial seed capital for the entity comes from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation.

Infra-Co was established to finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for Roads, Rail, Power and other key sectors.

It is envisaged that, over time, the entity will grow to N15 Trillion in assets and capital.

There is also Bank of Industry’s (BOI’s) Growth Platform for MSMEs. 

The BOI Growth Platform includes interventions schemes such as the renowned Government Enterprise and Empowerment Programme (GEEP) loans (MarketMoni, FarmerMoni and TraderMoni) all under the SIPs (the Social Investment Programmes) regarded as Africa’s largest fully-digitized micro-credit scheme, the MSME Survival Fund under the Economic Sustainability Plan (ESP), the North-East Rehabilitation Fund, the recently launched World Bank $750million NG-CARES programme, and state-based interventions, among others.

Micro, Small and Medium Enterprises (MSMEs) sector, which accounts for close to 50% of Nigeria’s GDP and 76% of the country’s labour force have been greatly impacted with the bank of Industry programmes as over four million Micro, Small and Medium Enterprises have been direct beneficiaries of the over N150billion deployed in the past five years.
57% of these MSMEs are owned by Nigerians below 35 years of age, and close to 60% of the beneficiaries are women.

This is a journey that only began as an idea 6 years ago: that the Muhammadu Buhari led administration can build systems that will serve everybody fairly and justly and bring credibility to government programmes. One of the biggest barriers identified was the ability to reach people directly, capture and digitize their information (even if they are illiterate) and process a benefit to them directly in a way that is transparent to all. BOI Growth Platform’s Command Centre, which now has “22,000 agents, living across all LGAs in Nigeria and equipped with its proprietary mobile technologies, receive mandates to capture and digitize businesses eligible for its growing suite of programmes.”  

TraderMoni scheme, which provides N10,000 interest-free & collateral-free loans to petty traders, mostly with an inventory of less than N5,000, made a huge positive impact nationwide. This includes enhancing the small businesses of beneficiaries, improving their families and contributing to the informal economy. 

The Economic Sustainability Plan under the National Economic Council collaborated with the Family Homes Funds with plans to build 300,000 social housing in the National Social Housing Programme. 

The Family Homes Fund, FHF, which is implementing the Social Housing element of the Economic Sustainability Plan ESP, so far concerning the National Social Housing programme as at end of 2021, have 17,281 homes at various stages of construction, either completed or in progress across 15 States.

While awaiting disbursements from the Central Bank of Nigeria, FHF MD Femi Adewole disclosed that the agency was able to mobilize other resources such as N10billion from the Ministry of Finance, $60million from the African Development Bank, 20million Euros from Agence Française De Développement, and about N20billion recycled capital from sales of completed property to execute the Social Housing programme in 2021.

For 2022, FHF expects to do 20,640 housing units using its own resources, but CBN disbursements would avail the opportunity to do even much more than that.

The Bank of Industry have applauded pioneering partners, particularly the Bill and Melinda Gates Foundation for providing the much-needed early support to the Bank of Industry to build this operation to the large scale it is now. 

In his remarks, the BOI Managing Director, Mr. Olukayode Pitan, restated the impact of its programmes, noting how programmes such as GEEP have won several local and international awards, including the award at the 2019 African Bankers’ Awards as the most impactful Financial Inclusion program in Africa.

President Muhammadu Buhari’s government without doubt have invested heavily both in infrastructural development, human and economic reforms.

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