Nigeria's Infrastructure: A Continental Perspective

56 Pages Posted: 20 Apr 2016

See all articles by Vivien Foster

Vivien Foster

World Bank

Nataliya Pushak

affiliation not provided to SSRN

Date Written: June 1, 2011

Abstract

Infrastructure made a net contribution of around one percentage point to Nigeria's improved per capita growth performance in recent years, in spite of the fact that unreliable power supplies held growth back. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by around 4 percentage points. Among its African peers, Nigeria has relatively advanced power, road, rail, and ICT networks that cover the national territory quite extensively. Extensive reforms are ongoing in the power, ports, ICT, and domestic air transport sectors. But challenges persist. The power sector's operational efficiency and cost recovery has been among the worst in Africa, supplying about half of what is required, with subsequent social costs of about 3.7 percent of GDP. The water and sanitation sector has inefficient operations, with low and declining levels of piped water coverage. Irrigation development is also low relative to the country's substantial potential. In the transport sector, Nigeria's road networks are in poor condition from lack of maintenance, and the country has a poor record on air transport safety. Addressing Nigeria's infrastructure challenges will require sustained expenditure of almost $14.2 billion per year over the next decade, or about 12 percent of GDP. Nigeria already spends about $5.9 billion. It is well placed to raise the funds needed for infrastructure, given the strength of the national economy, abundant oil revenues, and efforts at electricity cost recovery and other improvements to operations and management.

Keywords: Transport Economics Policy & Planning, Infrastructure Economics, Public Sector Economics, E-Business, Town Water Supply and Sanitation

Suggested Citation

Foster, Vivien and Pushak, Nataliya, Nigeria's Infrastructure: A Continental Perspective (June 1, 2011). World Bank Policy Research Working Paper No. 5686. Available at SSRN: https://ssrn.com/abstract=1871582

Vivien Foster (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Nataliya Pushak

affiliation not provided to SSRN ( email )

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