Publications
November 3, 2017
Infrastructure Financing In Nigeria:
Similar to most sub-Saharan
African (SSA) countries, Nigeria has a huge infrastructure deficit which
considerably limits efforts towards achieving inclusive growth, sustainable
development, and poverty reduction. With infrastructure stock estimated at
20-25 per cent of Gross Domestic Product (GDP), Nigerias infrastructure stock
is still significantly lower than the recommended international benchmark of 70
per cent of GDP. The 2014 National Integrated Infrastructure Master Plan (NIMP)
estimates that a total of US$ 3 trillion of investments, or US$100 billion
annually, is required over the next 30 years to bridge Nigerias infrastructure
gap. In particular, the Plan estimates that Nigeria will have to spend an
annual average of US$ 33 billion infrastructure investments for the period 2014
-2018. This means that Nigeria will have to more than double its spending on infrastructure
from the current 2-3 per cent of GDP to around 7 per cent to make appreciable
progress in infrastructure development over the next three decades.
Related
Nigeria Economic Update (Issue 43)
Crude oil prices have sustained upward increases for the past few weeks in October. While upward trajectory of crude oil prices is expected to be sustained in the short term in line with OPECs production cuts deal expected to run until March 2018, it is important to note that crude oil prices would remain volatile. The Nigerian government therefore should take advantage of periods of high revenue from crude oil exports to develop other sectors (such as Agriculture, Manufacturing and Services sectors) of the economy as key exporting and revenue generation sectors, and thus minimize volatility risks
Nigeria Economic Update (Issue 40)
Global crude prices settled lower in the review week (September 29 to October 6, 2017). Precisely, a barrel of Brent crude sold for about $56, showing a 6.3 percent decrease. Nigerias Bonny light exchanged at $56.76 per barrel as at October 6, 2017. The draw down in price may be attributable to indications of higher output, as revealed by the addition of more production rigs by the U.S, rise in Iraqs crude exports and survey showing OPECs overall boosted supply.