Lagos taps private capital to bridge infrastructure funding gap

… Sets to deliver 280-bed G.Hospital, Ojo, 150-bed Massey Children’s Hospital

The Lagos State Government is opening its doors wider for private sector partnerships to bridge a yawning infrastructure gap in Nigeria’s commercial cum economic hub.

Policymakers and development experts estimate the state’s infrastructure deficit at over $100 billion, as roads, rail, power, housing, water supply, healthcare, schools, and other public facilities are in short supply.

The Lagos’ situation is compounded is by its rapid population growth, estimated at more than 20 million residents, which continually outpaces infrastructure expansion. Although the state government has been increasing capital spending on infrastructure, allocating about N1.467 trillion for infrastructure projects in its 2026 budget, the challenge remains daunting.

Speaking on Monday while rendering account of the work done by the Ministry of Works and Infrastructure, Adekunle Olayinka, the Special Adviser to the Governor on Works, noted that future infrastructure delivery must increasingly be driven by private-sector investment, with the government focusing on creating the enabling regulatory and operational environment.

“Lagos remains open to partnerships with local and international investors,” he said, adding that collaboration will be critical to sustaining economic growth and meeting the demands of the state’s rapidly growing population.

Olayinka noted that the Governor Babajide Sanwo-Olu’s administration has, in the last seven years, intensified infrastructure-led growth strategy, unveiling a broad portfolio of public projects spanning healthcare, justice, education, security, tourism and industrial development, while calling for greater private sector participation to bridge the state’s infrastructure financing gap.

According to him, the administration completed inherited projects and delivered new infrastructure aligned with the state’s THEMES+ development agenda.

Among the flagship projects highlighted were the completion of the Bola Ahmed Tinubu Administrative Complex and the renovation of Revenue House in Alausa, aimed at improving public service efficiency and creating modern office infrastructure for government agencies.

He said the state was also expanding healthcare infrastructure through the construction of a 280-bed General Hospital in Ojo, a new 150-bed Massey Children’s Hospital, and a 1,500-bed Psychiatric Hospital and Rehabilitation Centre in Ketu-Ejinrin. The projects have collectively generated thousands of jobs and are expected to significantly improve access to healthcare services.

In the justice sector, Lagos is investing in court facilities, judges’ quarters, police infrastructure and mediation centres. The recently commissioned Commercial Court complex on Lagos Island is expected to strengthen commercial dispute resolution and enhance the state’s attractiveness as a business destination.

“The government is equally investing in education infrastructure, including new libraries, faculty buildings and business schools across state-owned tertiary institutions, while ongoing upgrades to sports facilities and youth centres are designed to boost youth development and community engagement.

Industrial development initiatives such as the Imota Light Industrial Park and the completed Leather Hub in Mushin are expected to support manufacturing, enterprise growth and job creation,” he noted.