How to fund oil, other infrastructure through Public -Private Partnership — Chairman, Strides Group

Moritz Abazie is the Chairman of Strides Group, the owners of Strides Energy & Maritime Limited. In this interview with Cynthia Alo, he speaks on a wide range of issues, including the ways and means of funding infrastructural development. In order to develop its infrastructure Moritz Abazie have stated, development economists will always attest to the fact that availability of quality infrastructure can directly raise the productivity of human and technical capital. This includes access to roads, improved education, and market for farmers’ output, energy, amongst others. All these facilitate private investment and improve job and income levels. Government’s investment in infrastructure activates the economy because when the economy is starved of infrastructure, human development is retarded and the economy cannot attract investment. For Infrastructural development Nigeria, or any other country in our situation, should put together a financial and business model for massive infrastructural development; there is no alternative to that. A public-private partnership has been found to be the most effective model for doing this, as the model aligns economic goals of government with profit motives of the private sector, and with that, we can drive infrastructural development. To stimulate the development of its public-private partnership model Nigeria. We are looking at the government collaborating with the private sector to create a transparent and sustainable model that is not susceptible to the political fabrics of the nation. The government can take a fund for instance, set up a management for it, invest or provide its own contributions into that fund, determine the areas it wants to intervene in terms of infrastructure, and design investment packages that will be attractive to private investors. The goal of private investors is to make profit; while the goal of government is to provide infrastructures that will activate growth in the economy. So, the alignment of these two goals and objectives creates a business case – if the government provides 30 per cent and private investors provide 70 per cent, for instance, and investment is made, and the business takes off, the government can also divest and commit the recovered resources into similar ventures of this nature. That is one model that can be used to reduce risk perception of investors because of government presence.   Source: Vanguardngr