Infrastructure refers to those facilities, structures, and institutions whose inadequacies and incompleteness lead to the limitation of the productive forces of a society. This includes, among others, scientific and technological institutions, educational institutions, basic industries, energy, transport, communication networks, and financial institutions, among others.
Every economic activity requires some developed infrastructure as a prerequisite for growth and industrialisation. The level of infrastructural development determines which factors of production can be profitably employed in the production of goods and services. Put differently, the level of infrastructure directly governs the absorptive capacity of an economy. That is why experts say that “relatively developed infrastructure helps in quick coordination of production economic activities.”
“And if current trends continue, a research report shows that fewer than 40 percent of African countries will reach universal access to electricity by 2050.”
Within the context of industrial development strategy, there exists an opportunity to promote the development of first-class infrastructure such as telecommunications, roads, railways, and power supply, which are considered essential for the effective operation of industry.
African experience
The Africa Infrastructure Development Index (AIDI) is a comprehensive tool used to assess the status and progress of infrastructure development across Africa. It’s a way to measure the continent’s performance in developing its infrastructure, which is critical for economic growth, poverty reduction, and improved living standards.
As I write, some public intellectuals are concerned about Africa’s chronic power problems, which have escalated into a crisis affecting 30 countries. This trend, if not stopped, according to analysts, tolls heavily on economic growth and productivity.
“The entire installed generation capacity of Africa’s sub-Saharan countries is just 68 gigawatts, no more than Spain’s.” Experts believe that as much as one-quarter of that capacity is unavailable because of ageing plants and poor maintenance.
In sub-Saharan Africa, just one person in five is recorded to have access to electricity. And if current trends continue, a research report shows that fewer than 40 percent of African countries will reach universal access to electricity by 2050.
Nigerian experience
Nigeria has physical, social, and digital infrastructure. Although the road expanded significantly during the oil boom of the 1970s and 1980s, most of the roads are so badly maintained that they are yearning for urgent repairs. While the grounded railway system of the past is receiving reactivation. It’s the effectiveness of this infrastructure that is crucial to the success of the country. How can one explain the collapse of the national grid eleven times in 2024?
The Federal Government has recently handed over the completed 62-kilometre, $3.02 billion Port Harcourt-Aba railway project to the Nigerian Railway Corporation (NRC). There are a couple of completed railway projects across the country. But what can we say to the alarm over vandalism and theft of rail tracks? Valuable metals and other materials are carted away from railway tracks. The nation continues to suffer losses despite the efforts of security agencies. A Nigerian railway worker described this trend as an organised conspiracy to commit economic sabotage. Railway tracks are stolen as the number of perpetrators is increasing despite many arrests.
Bayelsa State has not received electricity supply in the last four months as a result of vandalism. It’s quite unimaginable living without a power supply for four months in the 21st century. Some small business owners are closing their businesses, while families are grumbling from incessant power failures. In fact, power failure is a way of life in many parts of the country. Meanwhile, power sector stakeholders have cautioned that the incessant national grid collapse may continue unless urgent steps are taken to address numerous problems in the sector. Most roads across the country are not in good condition and in most cases affect the physical health of commuters.
Read also: Tinubu signs agreement on investments, critical infrastructure
Referring to digital infrastructure, Nigeria has a considerable internet audience with an internet penetration rate of about 55 percent. The internet freedom in Nigeria is among the most established in Africa, with about 123 million people having internet access.
Despite these efforts, there is no doubt that the country has an infrastructure deficit that must be addressed. Nigeria’s infrastructure deficit is a significant challenge, with the country facing a huge gap in its infrastructure needs. “Nigeria’s infrastructure gap is so severe that the country ranks 24th out of 54 African nations with a deficit estimated at 75 percent.” According to reports, Nigeria requires up to $3 trillion over the next 30 years to bridge this gap. This is a staggering amount, and it’s clear that the government cannot tackle this challenge alone.
The country’s infrastructure deficit is estimated to be 40 percent short of the World Bank standard. This shortfall affects various sectors, including transportation, energy, water, and sanitation. The lack of adequate infrastructure hinders economic growth, increases poverty, and affects the overall quality of life.
To address this challenge, the Nigerian government has explored different models, including concessions, outright sales, private sector participation, and public-private partnerships. These models have had varying degrees of success, with some projects facing challenges due to issues like corruption, inadequate regulation, and lack of transparency.
Despite these challenges, there are opportunities for growth and development. The government’s efforts to increase private sector participation and investment in infrastructure projects are steps in the right direction. However, it’s essential to address the underlying issues that have hindered progress in the past.
Main challenges
Corruption and lack of transparency have hindered the success of infrastructure projects in Nigeria. Inadequate regulation and enforcement have contributed to the challenges faced by infrastructure projects. Equally, inadequate private sector investment in infrastructure projects has limited the government’s ability to bridge the infrastructure gap.
Way forward
At state and federal levels there is a need for increased private sector participation. Encouraging private sector participation and investment in infrastructure projects can help bridge the infrastructure gap.
We ought to strengthen regulation and transparency, which can help address the challenges faced by infrastructure projects. We must consider developing a comprehensive infrastructure plan that can help prioritise projects and ensure that resources are allocated efficiently.
If Nigeria was to be regarded as an industrialised nation, it must realign its priorities towards infrastructure after education and health. “Nigeria’s extensive infrastructure deficit remains a critical impediment to sectors like manufacturing, health, and education.” Thank you.
MA Johnson, Rear Admiral (Rtd)
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
