Nigeria’s infrastructure deficit is estimated to require about 2.3 trillion dollars in investment between 2020 and 2043, according to data from the Africa Infrastructure Development Index, a shortfall experts say continues to hinder economic growth.
To address the gap, the country would need to commit roughly 100 billion dollars annually over the next 23 years to offset persistent underinvestment and limited public funding.
Despite the scale of required investment exceeding budgetary allocations over the past five years, there are concerns that funding levels may not significantly improve due to ongoing financial constraints.
Speaking on the sidelines of the Global Infrastructure Forum engagement at the International Monetary Fund IMF and World Bank meetings in Washington DC, Director General of the Infrastructure Concession Regulatory Commission ICRC, Dr Jobson Ewalefoh, stated that about 70 percent of the required infrastructure funding must come from the private sector.
Ewalefoh stressed that Nigeria’s infrastructure goals cannot be achieved without increased private sector participation.
“We have a scarcity of funds and insufficient public resources to deliver the infrastructure required for our development goals. Private capital is no longer optional; it is critical.
“When we say private sector, we have to go by way of public private partnership. We need facilities to prepare bankable projects to develop a pipeline of infrastructure for the country.
“The energy sector alone requires about 759 billion dollars, while transport infrastructure needs roughly 595 billion dollars. Other sectors such as ICT, healthcare, education, and agriculture also demand significant capital, reflecting a broad based infrastructure deficit that affects both economic productivity and social development.
“So we need to develop a PPP fund in such a way that it incorporates local realities. For Nigeria, the needed fund must consider our low appetite for long term investment and also the types of risks that we have in the country.”
He noted that the government has taken steps to reduce bureaucratic bottlenecks and improve investor confidence.
“Capital naturally flows to environments with lower risk and fewer barriers.
“There is appetite to invest in Africa, and particularly in Nigeria, but concerns around risk have historically slowed inflows. We are addressing those concerns through reforms and policy consistency.”
Ewalefoh added that the Global Infrastructure Forum has brought together donors, investors, lenders and stakeholders within the public private partnership ecosystem at the IMF meeting to identify global investment opportunities, which Nigeria aims to leverage.
“There’s a population of about 250 million people. The gap is there, we are ready, and the government of the day is willing,” he said.
Responding to inquiries on priority sectors, he referenced the Nigeria Integrated Infrastructure Master Plan NIMP, noting that energy, transport and ICT account for about 50 percent of the plan.
“The infrastructure needed is huge, and the opportunities are high. So we are looking at those sectors as critical; however, we cannot neglect the social sectors like hospitals, schools, and even agriculture,” he added.
