INDEPENDENT
August 8, 2008


Nigeria Needs $100b Investment In Four Infrastructure Areas -DMO
By David Agba, Snr Correspondent, Abuja

Director General of Debt Management Office (DMO), Abraham Nwankwo, on
Thursday identified four infrastructure areas that Nigeria must invest
over $100 billion in to get the economy functioning again.


These, according to him, are power ($18-20 billion), rail tracks
($8-17 billion), roads ($14 billion) and oil and gas ($60 billion).

Nwankwo spoke in a paper entitled, "Prospects for the Nigeria
Infrastructure Fund," at the Nigeria Infrastructure Summit in Abuja.

"These infrastructure and related investments are critical to
achieving 13 per cent annual growth rate of GDP set by the government
and to make Nigeria one of the 20 largest economies in the world by
2020," he stated.

He noted that adequate infrastructure is an engine for economic growth
and development, noting that there is huge infrastructure deficit in
critical sectors.

According to him, on power, only 40 per cent of Nigerians have access
to electricity and that Nigeria currently requires more than 10,000mw.

The DMO boss pointed out that installed generation capacity is
currently 6,000 MW, but available energy output is only about 3,000mw
compared to 39,000mw in South Africa, with a population less than
one-third of Nigeria's.

Port service was very inefficient and the facilities were in
deplorable state until it was recently concessioned, he added.

Nwankwo maintained that Nigeria's railway infrastructure is in
dilapidated state and in any case has a very limited coverage.

"Locomotive availability of 6 per cent in Nigeria is dismal in
comparison with 75 per cent for Africa. The railways contribute only
1per cent to national transportation," he said.

On National Independent Power Projects (NIPPs), Nwankwo stressed that
expected additional generation capacity totaling 4,777mw: Sapele
(561mw), Alaoji (961mw), Ihovbor (451mw), Egbema (338mw), Gbarain
(225MW), Omoku (225mw), Calabar (561mw), Omotosho (451mw), Geregu
(434mw), Oloronshogu (680mw, is in the offing.