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 20)
Power sector
analysis shows an increase in power generated by 15.5 percent from 3639.2 megawatt
to a peak of 4196.2 megawatt between April 22, 2016 and April 29, 201612,
albeit a sharp fall to 25.2 megawatts on April 23, 2016 following a system
collapse13. In a bid to attain the targeted 10,000 megawatts by 2019,
the Federal Government is set to complete the ongoing 47 power transmission
projects across the country, which would boost power supply14.
However, the delays in passing the budget into law is a major constraint to the
completion of the projects. Thus government needs to speed-up the passage of
the 2016 budget to provide the funds to complete the projects.