Private sector and the provision of infrastructure

Private sector and the provision of infrastructure

It has been estimated that for Nigeria to close its infrastructure gap and bring itself up to the international benchmark for infrastructure stock, it needs to spend as much as $2.9 trillion in the next 30 years and 48 percent of this sum, representing $1.4 trillion, has to come from the private sector. A breakdown of the $2.9 trillion shows funding sources that include private sector contributing 48 percent, which equals $1.392 billion; Federal Government, 29 percent, $841million; states and local governments, 23 percent, $667 million, and donor agencies, 0.4 percent, $11.6 million, giving a total of $2.911 trillion. As in many other growth and development indices, Nigeria lags behind many countries of the world in its infrastructure stock. The international benchmark for infrastructure stock as a percentage of GDP is 70 percent, but Nigeria currently stands at 25 percent. This, perhaps, explains the country’s low ranking in the 2015 Africa Competitiveness Report by the World...

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