Buhari rekindles hope of bridging $25bn infrastructure deficit

The emergence of  Muhammadu Buhari as the president-elect in Nigeria’s just concluded election and the concession of defeat by incumbent President Goodluck Jonathan, may have set the country on track to bridge its huge infrastructure deficit expected to gulp $25 billion over the next four years, according to estimates in the National Integrated Infrastructure Master Plan (NIIMP).

Consequently, with an imminent effortless transition process set for May 29th, analysts say the country might have  crossed its first hurdle by calming investors’ nerves and can now convincingly pull a host of major investors to its shores.

The first port of call, according to them is the likely mobilisation of resources to tackle the major infrastructure deficit, which they claim is uppermost on the mind of the incoming Buhari administration.

They are confident that the new government would increase its investments in infrastructure to about $25 billion from the present $10 billion in the first five years, if the country is to witness the revolution occasioned by the new confidence in the economy.

Buhari who is prominent for his stern stand against corruption, has been tipped by stakeholders across most sectors to drive major infrastructure rejuvenation in the country.

Besides, Buhari’s party, the All Progressive Congress (APC) in its manifesto, pledged to conduct a nationwide audit to identify key infrastructure gaps, and develop a target list of priority investment schemes at state and federal level, as a new National Development Plan (NDP).

The NDP will set out realistic and achievable investment goals in key economic sectors, which will then be utilised as a blueprint to attract local and foreign investors, the manifesto further states.

“The biggest achievement for us as a country in the just concluded election is not really the victory of the opposition but the smooth flow of the process and the peaceful outcome…as this naturally will swell investors’ confidence in this economy,” Ladi Lewis, chairman, Nigerian Institute of Architects (NIA), Lagos State chapter, told BusinessDay in an interview.

Lewis, is also confident that if the Buhari-led administration aggressively tackles corruption, zips up fiscal leakages and waste in government effectively, the administration would have just enough to deliver life-changing infrastructure for Nigerians.

The peaceful aftermath of the keenly contested election initially tipped to make or mar Nigeria’s growth story, has attracted commendation from major world leaders and according to analysts has also restored investors’ confidence in the country.

Nigeria, Africa’s biggest economy, is currently grappling with a huge infrastructure deficit with its core infrastructure stock equating to 35-40 percent of its Gross Domestic Product (GDP), against the international benchmark of 70 percent.

According to the National Integrated Master Plan (NIMP), if the country must bridge this visible infrastructure shortfall, estimated to cost $2.9 trillion over a 30 year period, she must aggressively ramp up spend from the current 3-5 percent of GDP to an average of 9 percent.

The NIMP further states that for the first five years, the annual investment in infrastructure needs to rise from the current $9-10 billion per year, to an average of $25 billion per year (2014-2018) with additional investment expected to require both public and private sector participation.

Adetokunbo Ajayi, CEO, Propertygate Development & Investment Plc, a real estate investment firm, is also optimistic that the peaceful electoral process, along with the commendable concession of defeat by President Jonathan, will no doubt reassure investors of the country’s merit as the choice investment destination.

“We expect that most of the investors who have remained sceptical of Nigeria’s outlook will have a change of mind,” Ajayi said.

According to him, though the gubernatorial election is still yet to be conducted, the commendation from notable world leaders such as Ban Ki moon, United States President Barrack Obama and the ECOWAS leadership clearly affirms the fact that the country is on the right path.

For Ajayi, there is no doubt that the provision and rehabilitation of major infrastructure such as roads, facilities for education, youth development and others remains key to driving economic growth and this challenge, the incoming administration must address holistically by providing an enabling environment to attract investors.

ODINAKA MBONU