Nigeria’s infrastructure deficit requires an estimated $2.3 trillion investment between 2020 and 2043, according to data from the Africa Infrastructure Development Index, a situation that has constrained economic growth across the country, according to experts.
To survive the deficit, the country must commit about $100 billion annually over the next 23 years to bridge the consistent underinvestment and the gap between infrastructure needs and public funds.
Although the investment needed to stabilise the sector exceeds budgetary allocations of the past five years, there is no indication that it will improve, considering the consistent underinvestment and paucity of funds.
However, Dr. Jobson Ewalefoh, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), speaking to DAILY POST on the sidelines of the Global Infrastructure Forum (GIF) engagement at the International Monetary Fund (IMF) and World Bank meetings in Washington, DC, explained that 70 percent of the required funding to boost infrastructure in Nigeria must come from the private sector.
Ewalefoh emphasized that the country’s infrastructure ambitions are unattainable without stronger 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, while transport infrastructure needs roughly $595 billion. 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.”
Noting that Nigeria has taken steps to reduce bureaucratic bottlenecks and enhance investor confidence, Ewalefoh said, “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.”
He noted that the Global Infrastructure Forum has assembled donors, investors, lenders, and everyone in the PPP ecosystem at the IMF meeting to identify opportunities available across the world, an opening that Nigeria desperately needs to position itself as an attractive investment destination.
“There’s a population of about 250 million people. The gap is there, we are ready, and the government of the day is willing,” Ewalefoh said.
Responding to questions about specific areas where investments are needed, Ewalefoh referenced the Nigeria Integrated Infrastructure Master Plan (NIMP), saying it clearly outlines the energy, transport, and ICT sectors, which he noted represent about 50 percent of the master 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.”
Nigeria pursues investors at IMF as $2.3trn infrastructure deficit widens
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