Nigeria is Morgue of Abandoned Projects, Says Bismarck Rewane

The Managing Director of Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, has likened Nigeria to a morgue of abandoned projects and described the Highway Development Management Initiative (HDMI) that was established by the federal government to redeem the situation as an albatross of growth.

Rewane stated these in his presentation at this month’s Lagos Business School (LBS) Breakfast Session titled “Nigeria in 2025: Breakthrough or Fall through,” in which he tasked the federal government to build a resilient economy to reverse Nigeria’s diminishing relevance in the global arena.

He also warned that delay in enthroning a resilient economy would be expensive for Nigeria while inaction and doing nothing would be debilitating and destructive.

Rewane said: “Nigeria is like a morgue of abandoned projects. Easy to start and easier to kill. The federal government in 2022 came up with the novel idea of highway concessioning.

“In all, about 19 federal highways were selected for rehabilitation and tolling. The Federal Executive Council (FEC) approved and reached financial closure with investors.”

He, however, said that the noble aims the HDMI was meant to achieve were thwarted with the entrance of the current Federal Minister of Works, who came into the picture, first as a catalyst and next as a spoiler.

He said that the derailment of the HDMI turned what was a great initiative into a nightmare and resulted in stalling “N11.54 trillion in private investment,” warning that “if HDMI fails private capital will avoid future infrastructure projects in roads, power, ports and rails.”

He added that Nigeria is still recovering from the Lekki-Epe concession failure but cautioned that “Nigeria cannot afford another high profile loss.”

According to him, “investors are licking their wounds, and Nigerian road users are suffering, smiling and hoping for the best.”

He said that case studies from major road projects illustrated how prolonged delays escalated costs by as much as 30 per cent annually, leading to stalled investments worth trillions of Naira.

He added: “Productivity losses from inefficient infrastructure are estimated at over $29 billion per year, according to the World Bank.”

Rewane also said that Nigeria’s economic stability is hinged on policy execution, adding that the “good news is that the Naira has begun to strengthen, appreciating by 6.07 per cent to ₦1,565/$ in the parallel market so far in 2025.

“The Naira is gaining on technical factors with gross external reserves falling to $39.5 billion.

“Also, the price of petrol at the refinery has dropped to ₦890/litre, even though consumers are yet to see a corresponding reduction at the pump.

“In Q1’25, inflation is projected to ease marginally towards 33.1 per cent, reflecting a stable Naira and fairly lower food and fuel prices.”

Rewane also said that Nigeria must now be resilient because in the global scheme of things, scale and size matter more than anything else.

“While Nigeria may perceive itself as an economic giant, its relevance on the global stage has diminished considerably compared to what it once was or what it thinks it is.

“Analysts view the situation as a glass both half-full of benefits and half-empty with problems. However, the primary benefit in this world of political and economic uncertainty is the incentive and urgency to build a resilient economy, which could lead to a reversal of the ‘Japa’ syndrome,” he said.

Rewane also projected that the Nigerian economy is capable of achieving a growth rate in excess of 4.0 per cent this year.

“We anticipate gross capital formation at $60 billion, a national savings ratio at 34.8 per cent, a sharp increase in government spending, and numerous other ancillary benefits.

“These projections are based on strategic responses to anticipated global shocks, including the removal of economic constraints and structural barriers, policy reforms to enhance the business and investment environment, and the strengthening of domestic industries to reduce external vulnerabilities,” Rewane said.

He also noted that since the inauguration of President Donald Trump of United States of America on January 20, 2025, he has signed a flurry of executive orders that are at odds with American values and strategic interests.

According to Rewane, the global responses to Trump’s executive orders have ranged from consternation to anger and frustration.

“Some see these developments as a major challenge or source of stress, whilst a few others view them as a window of opportunity and a lever for growth.

“Meanwhile, Trump has engaged in a spree of tariffs and threats against nearly everyone, but in response, there have been almost equal counter threats and retaliatory actions,” he said.

Dike Onwuamaeze

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