This document discusses Nigeria's infrastructure shortage and investment opportunities. It notes that Nigeria has inadequate infrastructure that inhibits economic growth. Data shows Nigeria has very low global infrastructure rankings, comparable to failed states. Nigeria's infrastructure master plan is estimated to require $2.9 trillion in investments. However, population growth is increasing demand for infrastructure investments. The document argues private investment in infrastructure funds and public-private partnerships could help close Nigeria's huge infrastructure funding gap and facilitate much needed development.

1. INFRASTRUCTURE
SHORTAGE
&
INVESTMENT
OPPORTUNITIES
(A CASE OF NIGERIA)

2. Country Key Indicators for
Nigeria

3. Nigeria’s major sore thumb
Inadequate & lack of Infrastructure!!!
The growth and
income potential from
infrastructure in
Nigeria and other
emerging markets has
been largely inhibited
by congestion, poor
operations or
maintenance culture
with regards to
facilities or what can
be better described as
a “tragedy of the
commons” situation.

4. Nigeria’s Global Infrastructure
Ranking
While it is clear that
inadequate or lack of
infrastructure is a
major impediment to
all-inclusive growth,
available data from
the World Economic
Forum indicates that
Nigeria’s
infrastructure ranking
is at the lowest levels
almost comparable
with that of failed and
poverty stricken
states like Somalia
and Sudan.

5. The Financial need
In a recent report by the
Institute of appraisers
and cost engineers
published in the
Vanguard newspapers of
September 8th 2015, it
was revealed that
Nigeria’s Infrastructure
master plan would
require a minimum of
$2.9 trillion dollars in
aggregate investments
to successfully manage
Nigeria’s infrastructure
deficit.

6. Investment opportunity?
 Growth sectors will continue to create demand for infrastructure investment.
 Connections to road, rail and public transport are vital for urban success.
 Doing business in Africa remains a challenge as infrastructure lags well
behind the rest of the world, but there are distinct regional differences.
 Recent PwC research suggests that infrastructure spending in sub-Saharan
Africa will exceed US$180* billion per annum by 2025, a growth rate of
10% per annum.
 Major infrastructure investment programmes in Nigeria and South Africa are now
being accompanied by significant projects in other countries like Ghana, Kenya,
Mozambique and Tanzania. However, a huge shortfall in government funding
creates opportunities for private investors to support this development need
through direct investment and public-private partnership (PPP) agreements.
Courtesy PWC’s Real Estate 2020: Building the future of Africa

7. Where and how much?
Graph Indicating projects and capital invested in Africa as at September 2012 Courtesy E&Y’s BMI

8. How to Harness the
opportunity??
 Capitalizing on the influence of government
policy and legislation to reduce corruption and
increase efficiency
 Establishment or set up of infrastructure
investment funds Using existing sources of
funds from multilateral agencies to attract the
private sector and its desire to match risk with
the decision to invest will increase infavour of
infrastructure projects
 Effective use of public and private partnership
agreements that facilitate the delivery of
services and needed infrastructure that are
aligned to both government and private sectors’

9. Proposed Solutions
 Establish privately managed infrastructure investments funds
backed by a “divestiture Infrastructure development strategy or
DIDS”, with the rationale being the shift from government ownership
and financing of infrastructure projects to private operations aimed at
moving the delivery of public services from inefficient, debt ridden,
and subsidy prone state owned enterprises to self-supporting private
project financing institutions.
 This will reduce the burden on the government’s budget deficit and
expand coverage of private services to facilitate economic growth
and the essential and much needed development.
 The strategic drive of attracting enhanced and structured long term
private capital through PPP’s and domestic funding sources will be
driven by the methodic application of certified and rigorous project
preparatory work models via engagement of financial, legal and
technical advisory for due diligence purposes and quality
construction development as “Bundled Public Private
Partnerhips” or BP3’s.

10. The Expected End

11. References
 “Infrastructure spend and investment in Africa” (Actual in relation to
Needed Courtesy the Infrastructure Journal 2014)
 PWC’s Real Estate 2020 report: “Building the future of Africa”, March
2015
 The “Business Environment and Competitiveness across Nigeria States”
(BECANS) 2012 report published by the African Institute of Applied
Economics, Enugu Nigeria
 The “where to Invest in Africa” guide 2014-15” Published by Rand
Merchant Bank
 World Economic Forum’s “Global Infrastructure Ranking 2015”
 Gilt Advisory’s Information Memorandum on “Bundled Public Private
Partnership Infrastructure Investment Fund” September 2015