The Appropriation Act, 2023
The Nigerian government recently passed into law its budget for the 2023 fiscal year. A breakdown of the budget indicates that infrastructural development received the highest capital vote in keeping with the government’s National Integrated Infrastructure Master Plan designed to shore up the nation’s infrastructure deficit. It is expected that this budget will engender significant construction works in the year 2023.
The Petroleum Industry Act, 2021 (PIA)
The PIA is a recent landmark legislation change in Nigeria. Beyond regulation, its primary objective is to encourage investment in the development of oil and gas assets in Nigeria and this will necessarily entail significant development of energy infrastructure in the Nigerian petroleum industry.
Infrastructure Corporation of Nigeria (InfraCorp)
A major development in the Nigerian construction industry in the past year is the establishment of the InfraCorp - a new investment, infrastructure and industrial vehicle promoted by the Central Bank of Nigeria, the Africa Finance Corporation, and the Nigerian Sovereign Investment Authority. InfraCorp recently signed term sheets with independent infrastructure asset managers responsible for originating, structuring, executing, and managing end-to-end bankable infrastructure projects in Nigeria.
Road Infrastructure Tax Credit Scheme
In 2019, Nigeria’s President signed Executive Order No.7 to encourage private companies to invest in massive road rehabilitations in exchange for tax credits. A number of companies have since taken benefit of this policy and it is expected that more private companies will buy into this initiative in 2023.
Construction And Allied Works Safety Regulations
In November 2022, the Nigerian government announced that it was developing the “Construction and Allied Works Safety Regulations” which would be comprehensive safety and health regulations for the construction industry. It is expected that this Regulation would be in force in the year, 2023.
For further information contact Godwin Omoaka, Partner, Templars