A Constrained Budget Compels A More Ingenious Financing Option For Nigeria's Infrastructure Development Securitization

Introduction

Nigeria's infrastructure, currently valued at about 35% of the nation's Gross Domestic Product (GDP) is widely regarded as dilapidated and inadequate. By comparison, larger and more developed economies typically have an infrastructure base sitting closer to about 70% of their GDP. This represents a huge funding deficit for Africa's largest country in capital projects such as roads, bridges, freight rail, ports, schools, hospitals, electricity grids, pipe-borne water, housing, broadband or internet coverage, etc. The Infrastructure Concession Regulatory Commission's report released in 2017¹ indicates that an injection of about $100 billion annually is needed over the next 6 years to provide decent quality infrastructure in Nigeria.