-by our correspondent.
Nigeria’s infrastructure deficit can only be properly resolved through Debt Capital Financing.
The Managing Director/ Chief Executive Officer of Skystone Capital & Investment Ltd., Ola Olabinjo, who pointed this out at a forum in Lagos, said the nation’s infrastructure deficit and needs cannot be addressed with yearly budgetary allocations alone.
Olabinjo said the drive of the Federal Government to develop critical infrastructure, attract investment, growth and development could only be achieved through debt capital financing.
He argued that the continued allocation and appropriation, in the budget, for development of the critical infrastructure sector of the economy, amounted to paying lip service to infrastructure development.
In his words, “The budget allocation for infrastructure for the 2021 fiscal year is a drop of water in the ocean, ii cannot maintain the existing infrastructure let alone develop new ones, and the only way to think out of the box and think afresh is new ways of tackling infrastructure development.”
MD/CEO, Skystone Capital & Investment Ltd., Ola Olabinjo
He urged government as a matter of urgency, to put in place friendly and attractive business policies that would not be inimical to both local and foreign investors, adding that the legal and regulatory framework must be right to attract the needed debt capital for infrastructure development.
“Nigeria cannot extricate itself from the infrastructural deficit it found itself presently if it continues to allocate and appropriate funds in the budget for building of roads, development of the educational sector, amongst others. We need to reassess and rethink the way we go about financing projects in the domestic economy, Debt market is still a major source of financing that can bring back moribund companies,” Olabinjo said.
The investment expert said that there was $100 trillion debt fund at zero interest looking for safe environment and opportunities even as Egypt, Morocco and Ghana were already enjoying the funds.
“Nigeria is in a better position to attract these funds due to its population size and high return on investment, our tax enforcement should be pursued aggressively and multiple taxation must be jettisoned.” He noted.