Financing infrastructure and growth: lessons and experience.

Abstract

Infrastructure forms the foundation for all development in a country. Inadequate infrastructure restricts productivity and limits competitiveness. A 2008 Infrastructure Consortium for Africa (ICA) study identified the dearth of infrastructure, amongst many other constraints, as responsible for Nigeria‘s low level of performance in all the key economic performance variables. Indeed, Nigeria‘s diminished competitiveness (127 of 142) could be directly attributed to the abysmal level of infrastructure development in the country. Nigeria‘s stock of basic infrastructure falls far short of the minimum required for meeting the demands of a 21st-century global economy. The paper would address the issue of finance for infrastructure, the adequacy or otherwise of the traditional annuall budgetary allocation, and alternative methods for funding infrastructure. The potentials of the stockmarket in filling the financing gap, option of Public Private Partnership (PPP) arrangement in upscaling our infrastructure will be examined. The paper covers an assessment of the merits and demerits of PPP, the PPP process and framework in Nigeria, and how Nigeria could benefit from the experiences of other jurisdictions.