Project financing in Nigeria should not depend on ODA or the traditional ways only, that is the Government at all levels. Private sector should contribute in bridging the financial gap of funding infrastructures development in Nigeria through Private Finance Initiatives (PFI) and Public Private partnerships (PPP).

1. FINANCING INFRASTRUCTURES INNIGERIA
An increasing number of naturalresourcesand projects have been financed and
developed to meet the demand for Nigeria’s significantinfrastructureneeds. But
there is still much to be done. Dr. Ngozi Okonjo-Iweala, estimated that Nigeria
needs N10.63 trillion ($67 billion) for road upgrades, bridgerepairs, theenergy
sector, hospitals and schools. The Africa InfrastructureCountryDiagnostic (AICD)
Reportfor 2011 estimates that Nigeria requiressustained spending of $14.2 billion
per annum over the next decade in order to address the infrastructurechallenge.
In the last 16years since the return to democracy, Nigeria has received ODA in
variousforms, with the years 2005 and 2006 recording $20bn in cumulativegrants
mainly in the form of negotiated debt relief of about60%of Nigeria’sParis Club
debt, while it paid off the 40% balancethrough a buy backoperation.
Yet the gainsof the relief just like the initial loans it soughtto clear got lost in
distortions and corruption. Nigeria ranks136 outof 176 countrieswith a score of
just 27 out of 100 on the 2014 Corruption Perception Index; with themost
notoriousperiod corruption from 2011 to 2013(TransparencyInternational, 2015)
FundingtheSDGs: Theway forward
Nigeria failed to build on the gains of the 2006 debtrelief despite the oil boom
years that followed. Currentlywith looming recession; $10.3bn externaland
$42.4bn internaldebtsprofile; increasing population with attendant demand for
infrastructure, Nigeria needsto fashion new models for financing critical
infrastructurewithoutresorting to borrowing
Experts believe the hugefunding requirementfor presentand futureinfrastructural
development in Nigeria indicates that traditional funding methods can no longer
suffice as the traditional fund providers, i.e. different levels of Government, do not
have such resources at their disposal.
In view of this, Private Finance Initiatives (PFI) and Public Private Partnerships(PPP)
are being adopted to meet the funding challenge.
References:
Runde,D.F and Savoy, C.M(2014) ‘Paying for Development: Domestic Resource
Mobilization’, Centre for Strategic and InternationalStudies, May5.
http://csis.org/publication/paying-development-domestic-resource-mobilization

2. TransparencyInternational(2015) ‘Nigeria’scorruption challenge’, Politicsand
Government, 28 May.
http://www.transparency.org/news/feature/nigerias_corruption_challenge
Wilkie, M.K(2008)‘TheEffectof Foreign Aid on Perception of Political Corruption in
Sub-SaharanAfrica’, Departmentof PoliticalScience, Universityof CentralFlorida,
Orlando Florida.
http://etd.fcla.edu/CF/CFE0002440/Wilkie_Margaret_K_200812_MA.pdf
http://www.thisdaylive.com/articles/bridging-nigerias-infrastructural-deficit-via-
project-financing/159827/