TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Nigeria’s $8b infrastructure deficit – Daily Independent

The Editor by The Editor
November 12 2014
in Public Affairs, Uncategorized
A A
0
22
SHARES
734
VIEWS
Share on FacebookShare on Twitter

Definitely, there is urgent need for governments in the nation to declare an emergency in public infrastructural development

The recent disclosure by the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala that the nation needs US$ 8 billion annually to bridge the huge gap in the nation’s public infrastructure, and was keen on private partnership to meet the need hardly comes as a surprise. Speaking at the Public Private Partnership (PPP) stakeholders’ workshop organized by the African Development Bank (ADB), in Abuja, Okonjo-Iweala said: “To fund infrastructure, Nigeria needs about $14billion every year, out of which $10 billion should come from the federal level…currently the country’s spending on infrastructure is about $6 billion. So there is a big gap that needs to be filled. We are talking about something in the region of $8 billion. That is why PPPs are very important to Nigeria at the moment.”

It was quite obvious that the country would come to this crisis point. For several decades, the federal and state governments’ budgets for capital expenditure have been declining while recurrent expenditure has been on the rise. The average government budget for capital expenditure has been about 25 percent. This has translated into less investment in building and maintenance of public infrastructure. In fact, to say that the various administrations from the military era till date have not given adequate attention to the development of infrastructure in the country is an understatement. Large decibels of public outcry for government to cut recurrent expenditure to free funds for infrastructural development, especially by reducing the cost of governance by, for instance, implementing the Oronsaye Report, fell on deaf ears.

At the moment, the nation’s infrastructure is grossly underdeveloped. Only 18 percent of the nation’s 197,000 kilometres of federal roads network which takes 90 percent of persons across the country is paved. The situation is worse for state and local government roads. The problem of the roads is worsened by poor maintenance. The situation in public power generation and supply is still abysmal. The country currently generates only about 4000 MW of power which is less than 50 percent of demand. 86 percent of firms in the country still depend on diesel powered electricity generation sets to power 61 percent of their power needs, even after the privatization of the power sector. The high cost of power generation forced on organizations by the inadequate public power supply has resulted in high cost of production which has made Nigerian goods uncompetitive. Firms that could not cope have closed shop while many have relocated to neighboring countries with stable power supply.

As at 2010, only 4 percent of the populace had access to piped water despite the danger of this deficiency to public health. It’s a shame that piped water which was available in most urban centres in the 1960s without much petro dollars has given way to private unsanitary wells and boreholes where impure water is sold to the public. Rail and water transportation remain largely undeveloped. Apart from the Abeokuta-Itakpe rail link that has modern standard gauge, much of the nation’s railway tracks are the old narrow gauge built by the colonial masters. The nation’s aviation infrastructure can also do with extensive upgrade.

Definitely, there is urgent need for governments in the nation to declare an emergency in public infrastructural development. Government is not unaware of the challenge as indicated by the Finance Minister. She was optimistic that government will utilize Private Public Partnerships (PPP) to bridge the huge annual funding gap in development of the nation’s infrastructure. The PPP initiative is a good idea which some countries have used to their advantage. But is the federal government’s optimism justified given the frosty and contentious outcome of its PPP involvements in infrastructural developments in the country in recent times which some of the private partners accused government of breech of contract? A case in point is Bi- Courtney that developed the Murtala Mohammed International Airport Terminal 2, Lagos under PPP arrangement. The same company won the concession for construction of the Lagos-Ibadan Expressway which was terminated in controversial circumstances which case is still in court. Virgin Atlantic Airline also pulled out of its partnership deal with the federal government amidst unsavory allegations. The finance minister has blamed the Private partners for failure of the past PPP initiatives by maximizing their profit and leaving the country to bear the risk alone. This belated complaint is in our view an unacceptable admittance of failure. What do we make out of this except that the Infrastructure Concessioning Regulatory Commission (ICRC) which was established to guide the government aright over PPP matters has failed repeatedly in its duties?

We urge the government to be more circumspect in its PPP involvements and respect the spirit and letter of the agreements with the partners in the initiative to engender mutual trust and encourage unfettered inflow of funds to for nation’s infrastructural development. Government and indeed all Nigerians must imbibe the maintenance culture to prolong the lifespan of public infrastructure and ensure that viable projects initiated but not completed by one administration are completed by the next government to avoid waste.

Share9Tweet6
Previous Post

Dealing with the HIV/AIDS menace – Thisday

Next Post

Ebola fears: CAF strips Morocco of Nations Cup hosting rights …new host due on Wednesday

Related Posts

Tinubu denies Christian, Muslim genocide in Nigeria
Public Affairs

Pay local contractors – Punch

February 4 2026
Drug tests for public office aspirants, a must – Punch
Public Affairs

Drug tests for public office aspirants, a must – Punch

January 9 2026
Economy in 2026: From risk to recovery – Punch
Public Affairs

Economy in 2026: From risk to recovery – Punch

January 2 2026
FG launches digital platform to transition to paperless operation
Public Affairs

LGs: Executive Order opposes federalism – Punch

December 30 2025
US launches strikes against ISIS terrorists in Sokoto
Public Affairs

Implications of US air strikes in Nigeria – Punch

December 29 2025
Sole administrator confirms release of withheld Rivers LG allocations
Public Affairs

Emergency: Supreme Court ruling assaults federalism – Punch

December 26 2025
Next Post

Ebola fears: CAF strips Morocco of Nations Cup hosting rights …new host due on Wednesday

Gov Uduaghan appoints 10 new Commissioners, Chief of Staff

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Umahi’s son Osborne, picks LG chairmanship form in Ebonyi

Umahi’s son Osborne, picks LG chairmanship form in Ebonyi

by The Editor
January 20 2026
0

...

Ogun State cancels Awujale selection process

Ogun State cancels Awujale selection process

by The Editor
December 18 2025
0

...

60 princes vie for Awujale stool as Ogun govt reviews selection process

60 princes vie for Awujale stool as Ogun govt reviews selection process

by The Editor
December 16 2025
0

...

Police dismiss gunmen attack in Lagos community

Police dismiss gunmen attack in Lagos community

by The Editor
December 12 2025
0

...

APPOINTMENTS

Tinubu confers GCON on business associate, Chagoury

Tinubu confers GCON on business associate, Chagoury

by The Editor
January 20 2026
0

...

FG targets Dana Air assets to refund trapped passenger funds

FG reshuffles NCAA directors amid corruption allegations

by The Editor
December 26 2025
0

...

Senate screens Tinubu’s nominees for NMDPRA, NUPRC

Senate screens Tinubu’s nominees for NMDPRA, NUPRC

by The Editor
December 18 2025
0

...

Govt launches power outage reporting app

Pres. Tinubu reconstitutes NERC board

by The Editor
December 18 2025
0

...

ODDITIES

Nigerian nurse loses licence for sleeping during shift in Australia

Nigerian nurse loses licence for sleeping during shift in Australia

by The Editor
January 24 2026
0

Woman battling cancer seeks second wife for sex-starved husband

Woman battling cancer seeks second wife for sex-starved husband

by The Editor
December 27 2025
0

Man kills cousin over ₦1,000 burial refund in Delta State

Man kills cousin over ₦1,000 burial refund in Delta State

by The Editor
December 22 2025
0

GLOBAL NEWS

Iran vows retaliation to US bombing of nuclear sites

Iran formally allows women to ride motorcycles

by The Editor
February 4 2026
0

...

Danish PM slams Trump over NATO Afghanistan remarks

Danish PM slams Trump over NATO Afghanistan remarks

by The Editor
January 24 2026
0

...

Trump threatens Canada with 100% tariff over trade deal with China

Trump threatens Canada with 100% tariff over trade deal with China

by The Editor
January 24 2026
0

...

Trump charges $1bn for permanent seat on Gaza ‘Board of Peace’, invites Putin

Trump charges $1bn for permanent seat on Gaza ‘Board of Peace’, invites Putin

by The Editor
January 20 2026
0

...

Somaliland denies agreeing to host Israeli bases, resettle Palestinians

Somaliland denies agreeing to host Israeli bases, resettle Palestinians

by The Editor
January 2 2026
0

...

State of the States

Sanwo-Olu signs 2026 Lagos budget into law

Sanwo-Olu signs 2026 Lagos budget into law

by The Editor
January 20 2026
0

...

LASTMA dismisses five, sanctions 14 officers for misconduct

LASTMA dismisses five, sanctions 14 officers for misconduct

by The Editor
January 2 2026
0

...

Gombe governor leads funeral prayers for seven journalists

Gombe governor leads funeral prayers for seven journalists

by The Editor
December 30 2025
0

...

Gov. Adeleke signs Osun 2026 appropriation bill into law

Gov. Adeleke signs Osun 2026 appropriation bill into law

by The Editor
December 29 2025
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Nnamdi Kanu appeals conviction, faults terrorism trial

Nnamdi Kanu appeals conviction, faults terrorism trial

February 5 2026
24-year-old in police net over alleged N48.5m scam at Lagos Airport

24-year-old in police net over alleged N48.5m scam at Lagos Airport

February 4 2026
Tinubu denies Christian, Muslim genocide in Nigeria

Pay local contractors – Punch

February 4 2026
FG declares June 14 public holiday

Senate to hike Fed Govt share of federation revenue

February 4 2026

EDITORIAL REVIEW

Tinubu denies Christian, Muslim genocide in Nigeria

Pay local contractors – Punch

by The Editor
February 4 2026
0

Drug tests for public office aspirants, a must – Punch

Drug tests for public office aspirants, a must – Punch

by The Editor
January 9 2026
0

Economy in 2026: From risk to recovery – Punch

Economy in 2026: From risk to recovery – Punch

by The Editor
January 2 2026
0

FG launches digital platform to transition to paperless operation

LGs: Executive Order opposes federalism – Punch

by The Editor
December 30 2025
0

US launches strikes against ISIS terrorists in Sokoto

Implications of US air strikes in Nigeria – Punch

by The Editor
December 29 2025
0

Opinion

SEC explains licence grant to two crypto exchanges in Nigeria

New cryptocurrency tax regime in Nigeria

by The Editor
January 20 2026
0

...

Air Peace pledges free evacuation, medicals for trafficked Nigerian girls in Ivory Coast

No, Nigerian airfares are not the cheapest

by The Editor
December 29 2025
0

...

Tax document fraud: Governance and trust deficit

Tax document fraud: Governance and trust deficit

by The Editor
December 22 2025
0

...

Peter Mbah’s visionary leadership and the rebirth of security in Enugu State

Peter Mbah’s visionary leadership and the rebirth of security in Enugu State

by The Editor
December 8 2025
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.