My target audience is international and national governments, financial regulators, financial experts, development experts, economists, policy makers and policy analysts whose crucial focus has long been the financing resources needed to finance development plans and agenda. The concept of financing for development (FFD) is an offshoot of the financing gap that surpasses the current development financial flows and the new global development goals called the Sustainable Development Goals (SDGs), 2016-2030. In principle, adequate financial resources are available globally; however, the resources will not automatically be mobilized and utilized to support the achievement of development goals except with a paradigm shift to encourage Domestic Resource Mobilization (DRM) to unlock the needed resources to achieve the development agenda, plans and goals nationally and internationally. Thank you. Yuwana Zemoh-Adeyemi

1. DEVELOPMENT FINANCE IMPACT PROJECT
The Role of Domestic Resource Mobilization for Sustainable Financing of
Development Plans in Nigeria
The financing resources needed to finance development plans and agenda has long
been the crucial focus of international and national governments, financial experts,
development experts, economists, policy makers and policy analysts. The
complexities from human activities on planet earth resulting to losses from risk and
missed opportunities affect everyone with varying social, economic and
environmental dimensions.
The conceptof financing for development (FFD) is an offshoot of the financing gap
that surpasses the current development financial flows and the new global
development goals called the ‘‘Sustainable Development Goals” (SDGs), 2016-
2030. In principle, adequate financial resources are available globally, with a large
amounts of investible resources, mostly private are held in developing countries.
However, available public and private resources will not automatically be located
and used exceptwith a paradigm shift to encourage Domestic ResourceMobilization
(DRM) and to unlock the resources needed to achieve the development plans and
goals nationally and internationally.
.
Nigeria’s state of infrastructure inadequacy (gap) has been an impediment to rapid
economic growth and development of the economy. Infrastructure being the basic
facilities or amenities of a nation, society or organization need to function properly
such as transportation, communication, power supply, and buildings for residential,
schools, hospitals, offices, markets or industries is inadequate.

2. Nigeria has a population of over 170 Million people among which 53.47 % live
below the poverty line of $1.25/day according to World Bank’s report. Notably,
Nigeria has had its fair share of international public finance assistance otherwise
known as Official Development Assistance (ODA). However, attaining sustainable
development has and will remain a mirage, without considering a paradigm shift for
alternative means of financing development plans.
Domestic Resource Mobilization (DRM) has been the focus of Capital market
operations and transaction in Nigeria aside capital appreciation objectives of
individual investors. The need to mobilize financial resources bygovernment cannot
be over emphasized based the nation’s development needs which seem to outstrip
its revenue generation capacity. Fiscal expenditure records in Nigerian have shown
that revenue from taxation and statutory allocation alone are notsufficient to finance
the current and capital expenditure of the three tiers of governments of the
federation. It is therefore imperative for the public sector to look for other sources
of capital inflows to close the resources gaps and the infrastructure financing gaps.
Infrastructure is the bedrockof all developments in every nation. However,
Infrastructure in Nigeria is either in a bad shape or inadequate for effective
economic activities over the years. Reasons for inadequate infrastructure are lack
of adequate finance, inefficient monitoring and enforcement mechanism that has
led to N12trillionn worth of abandoned projects according to the President of
Chartered Institute of Project Management of Nigeria (CIPMN) with 12, 000
Federal government projects aside states and local government projects.
The World Bank estimates that a 1 per cent increase in a country’s infrastructure
stockleads to a 1 per cent increase in the level of GDP. Clearly, the multiplier

3. effect of infrastructure stockwill be higher in countries that are starting from a low
base. The World Economic Forum (WEF) ranks Nigeria 130th out of 144
countries on infrastructure in its 2013 global competitiveness index report. While
this ranking underscores the level of the challenges facing Nigeria, it should
strengthen government’s determination to tackle the problem within the shortest
possible time so as to improve Nigeria’s competitiveness. The WEF 2012 report
noted that investment in infrastructure boosts acountry’s competitiveness while
the World Bank’s Africa Infrastructure Country Diagnostics (AICD) affirms that
raising Nigeria’s infrastructure investments to current levels of middle-income
countries in sub-Saharan Africa could raise GDP growth by as much as four
percentage points.
The Nigeria’s National Integrated Infrastructure Master Plan (NIIMP) estimates
Nigeria’s infrastructure needs at $2.9 trillion over the next 30 years, beginning from
2014. TheAfrican Development Bank’s Infrastructure Action Plan (IAP) forNigeria
estimates $350 billion of investment in infrastructure for the next 10 years, implying
yearly investments of $35 billion in infrastructure equivalent to 13 per cent of
Nigeria’s GDP and over a third of sub-Saharan Africa’s annual infrastructure needs.
Existing sources cannot cover half of this requirement. Nigeria must be careful not
to overly depend on ODA, foreign loans to guard against exposure to foreign
exchange risk especially, given that revenues from infrastructure and other revenue
sources arepredominantly in localcurrency. Challenges posed bytraditional funding
sources make capital markets increasingly the preferred way to finance infrastructure
in Nigeria due to the low cost of capital it attracts.
Development Finance Institutions (DFI) such as the Bank of Industry could issue
bonds on behalf of Federal Government of Nigeria (FGN) and directly on-lend to

4. banks to finance projects. The federal government takes credit risk while banks bear
the project risks and bondholders do not take any credit or project (performance)
risks. Securitization of public asset, offers potential new capital to finance critical
infrastructure and other project finance needs, it reduces funding costs, reduces
asset-liability mismatch and enables efficient transfer of risks. The sum of N589
billion was raised from the nation’s bourse through bonds by various states for
infrastructure development between 1999 and 2013. Lagos State government for
instance has been the most active state in bond issuance as it accessed the bond
market four times between 1999 and 2013.
The relationship between infrastructural development and capital market growth has,
in recent years becomeone of the mostimportant economic topics in both academic
and policy cycle. In the sub-Saharan region, Nigeria in particular, traffic congestion,
powerblack outs in major cities, bad quality ofroads, inadequate telecommunication
services, shortage of drinking water, irrigation and industrial water, all bear witness
to the inadequate existing infrastructure facilities. Even schools are not equipped
with basic infrastructure that enhances human capital development.
To achieve sustainable FFD and sustainable development, the pursuit of policies
geared towards deepening the capital market particularly the bonds segment of the
market to mobilize funds is crucial. Investment in infrastructure will no doubt
facilitate and accelerated development of Nigeria especially through joint efforts of
corporate organization (private sector) and public institutions (government).
The FFD and DRM concepts if well internalized will surely deepen the capital
market; close the infrastructure, infrastructure financing, the unemployment

5. and poverty gaps and that also justifies and engenders critical interest of these
SDGs pursued.
SOURCES
1. World Bank, From Billions to Trillions, accessible on:
http://www.worldbank.org
2. Nigeria StockExchange and Securities & Exchange Commission, Nigeria
Market reports as at October2015
3. Contributions from Authors and Experts.