The Africa Development Bank (AfDB) has projected that Nigeria will need approximately $3 trillion in infrastructure investment over the next three decades. To establish a world-class infrastructure network capable of sustaining economic growth and development, Nigeria requires around $165 billion in the medium term. This information was provided in a report titled “Infrastructure Action Plan for Nigeria: Closing the Infrastructure Gap and Accelerating Economic Translation.”
The Chief Economist of the Development Bank of Nigeria, Prof. Joseph Nnanna (Jnr), emphasized the importance of infrastructure investment for achieving growth and development in Nigeria. He noted that any government action that hinders infrastructure growth and development has far-reaching implications, both at the micro and macro levels. Development in Nigeria has been impeded by mismanagement of public funds, lack of transparency, and accountability, among other factors.
Nnanna highlighted the role of infrastructure in promoting economic development, especially in terms of industrialization. Adequate infrastructure creates an enabling environment for productive activities, fosters investment, facilitates the movement of goods and people, enhances information dissemination, and supports economic diversification and commercialization. To foster economic growth and development, the government must actively support industrialization by ensuring the provision of essential infrastructure components, including uninterrupted electricity, a robust road network, access to water, year-round irrigation, and a reliable communication network.
Investing in critical infrastructure is crucial for Nigeria’s future growth and development, and the government has increased budgetary allocations for capital expenditure in recent years to prioritize infrastructure development.