Nigeria targets $100bn annual infrastructure spend, turns to PPPs to close gap

Nigeria is intensifying efforts to close its vast infrastructure deficit, estimated at $2.3 trillion between 2020 and 2043, as it turns to public-private partnerships (PPPs) to mobilise funding beyond limited government resources.

Speaking on the sidelines of the Global Infrastructure Facility, a G20 initiative, at the IMF/World Bank Spring Meetings in Washington, Jobson Ewalefoh, director-general of the Infrastructure Concession Regulatory Commission (ICRC), said the country requires about $100 billion annually over the next 23 years to meet its infrastructure needs.

Ewalefoh noted that budgetary allocations remain insufficient to meet this demand, making private sector participation critical to delivering infrastructure projects across the country.

He said Nigeria’s National Integrated Infrastructure Master Plan projects that about 70 percent of the required funding will come from the private sector, underscoring the importance of developing bankable project pipelines that can attract both local and international investors.

According to him, discussions at the forum highlighted the need for PPP frameworks that reflect local realities, including investment risks, the political environment, and the limited appetite for long-term capital in developing economies like Nigeria.

Ewalefoh said Nigeria is positioning itself as a viable investment destination, citing its population of about 250 million and ongoing government reforms aimed at improving the business climate and boosting investor confidence.

He assured investors of strong legal and regulatory frameworks to protect investments, emphasising the government’s commitment to the rule of law, contract sanctity, and policies designed to guarantee returns and reduce perceived risks.

The ICRC boss also pointed to growing investor interest following recent engagements, attributing this to reforms that have dismantled longstanding barriers and enhanced transparency in the investment environment.

He identified energy and transport as priority sectors, with funding requirements estimated at $759 billion and $595 billion respectively, while noting that ICT, agriculture, healthcare, and education also require substantial investment.

Ewalefoh said PPPs provide a practical solution to Nigeria’s funding constraints by reducing reliance on public budgets and enabling sustainable infrastructure financing through long-term investment recovery mechanisms for private investors.

He added that ongoing engagements with global investors and development partners are expected to unlock investment flows, accelerate project delivery, and support Nigeria’s efforts to achieve its infrastructure development goals.

Ewalefoh also commended President Bola Tinubu for reforms that he said are creating a more enabling environment for PPPs and improving the country’s attractiveness to investors.