By Okeoghene Akubuike

Experts have called on the Federal Government to expedite the establishment of an Infrastructure Company (Infra-Co) dedicated to critical infrastructure investments.

They made the call at the ongoing Nigeria Public-Private Partnership (PPP) Summit organised by the Infrastructure Concession Regulatory Commission (ICRC) in Abuja on Wednesday.

The experts, in a panel discussion on “Maximising Nigeria’s Economic Potentials in the Transport Sector Using PPPs: Focus on Rail and Road Infrastructure”, explored the benefits of PPPs in improving the state of socio-economic infrastructures and addressing the challenges facing the transportation sector.

Rowland Ocholi, Managing Director, Bethlehem Rail Infrastructure Limited, said the call for an Infrastructure Company aimed to drive critical infrastructure investments, by leveraging PPPs to bridge Nigeria’s infrastructure gap.

“We call for the setting up of an infrastructure company, which we have christened the Nigerian Railway Infrastructure Company, which will own the fixed infrastructure.

“It will grant maintenance concessions, and build new railway infrastructure, which it will also concession to an operation company.

“It will also develop property consistent with the Hong Kong MTR model. It will have a core investor with at least a 50 per cent stake.

“The government may, over time, reduce its stake further or eventually exit through market floatation.

“Now the operations company could be separated into a freight operator and train operator,” he said.

Ocholi expressed concern that there was too much emphasis on road transportation in PPPs, while rail transportation was being overlooked.

Nasir Alli, Past President, Permanent International Association of Road Congress, suggested centralising the road sector in a semi-autonomous agency to improve efficiency and resolve conflicting interests.

“I think centralising is key, and that is what we are trying to achieve with our reform, which is to create a road authority to oversee the sector,” he said.

On his part, Opuiyo Oforiokuma, Senior Partner, Africa 50 Infrastructure Acceleration Fund, expressed delight with the progress made on the HMDI project, noting that at least one contract was operational and another was under construction.

Oforiokuma was optimistic that the Federal Roads Maintenance Agency (FERMA) could serve as a foundation for creating a well-structured organisation to manage federal roads, utilising private sector expertise and financing.

“I do believe that you have the foundation to set up a well-structured agency to deal with the federal roads in terms of using FERMA as the foundation to build on the institution,” he said.

Similarly, Lai Are, Managing Director, Catamaran Nigeria Limited, emphasised the importance of technology in implementing efficient toll payment solutions, requiring banks to support systems like ‘Park and Go’.

Are, whose company is tolling the 220 kilometres Keffi-Akwanga-Lafia-Makurdi Expressway, suggested that roads should be viewed as economic development assets rather than just utilities.

“Technology is very important as we move forward with tolls, payment solutions. We need the banks to come to the forefront in Park and Go so that we can provide efficient service to the people.

“I want us to view roads as an economic development asset rather than a utility; that way, we will be willing to pay and derive long-term benefits from it,” he said.

Adeniran Ajakaiye, Managing Director, Africa Plus Ltd., the concessionaire for the reconstruction of the 125km Benin-Asaba Expressway, said investors were wary of political instability.

Ajakaiye called for proper transitioning of governments to restore investors’ confidence.

He advised the Nigerian government to create a favourable environment for private sector investments to flourish and to involve subnational governments in the process.

The experts, which consisted of international investors and private sector leaders in infrastructure, also urged the Nigerian government to signal that it was open for business and committed to fostering a favourable investment environment.

This, they noted, would involve streamlining regulatory processes, providing incentives, and ensuring a stable economic framework to attract private sector investment in infrastructure development.

The experts commended the ICRC for its efforts in promoting PPPs in Nigeria.

The News Agency of Nigeria (NAN) reports that the summit has the theme “Unlocking Nigeria’s Potential: The Role of Public-Private Partnerships in Delivering the Renewed Hope Agenda.” (NAN)(www.nannews.ng)

Edited by Vivian Ihechu