Nigeria is facing a significant infrastructure deficit, estimated at $100 billion, which has become a major challenge to its economic growth. The government has taken steps to address this issue by allocating ₦4.06 trillion ($2.7 billion) for infrastructure in the 2025 Federal Budget, representing 7.4% of total spending. The National Integrated Infrastructure Master Plan (NIIMP) aims to increase the country’s infrastructure stock to 70% of GDP by 2043.
Pension funds have also contributed, investing ₦262.567 billion in infrastructure during the first ten months of 2025, marking a 48.1% year-on-year increase. Major projects such as the Lagos-Calabar Coastal Highway and Sokoto-Badagry Superhighway have been initiated as part of these efforts.
Dr. Justin Yifu Lin, an economist, stated: “Infrastructure development is a key driver of economic growth and development, and it requires a coordinated effort from government, private sector, and civil society to achieve sustainable development.” Public-private partnerships (PPPs) are being considered as a solution to leverage private sector funding and expertise for infrastructure projects.
José Luis Guajardo, Director of Infrastructure at the World Economic Forum, said: “The quality of infrastructure is a key determinant of a country’s competitiveness. Nigeria’s focus on PPPs and infrastructure investment is a step in the right direction.”
Ngozi Okonjo-Iweala, former Finance Minister of Nigeria, added: “Nigeria’s vast natural resources, cultural diversity, and teeming population are assets that can drive economic growth. Investing in infrastructure is key to unlocking these potentials.”
PPPs are seen as beneficial because they can improve efficiency and innovation while providing access to capital and reducing financial risks associated with large-scale projects. Collaboration between government and private sector stakeholders may also offer business opportunities and support social responsibility initiatives.
Other countries such as South Korea, Rwanda, Singapore, and China have demonstrated how sustained investment in infrastructure can enhance global competitiveness and lift populations out of poverty.
According to the International Labour Organization (ILO), each dollar invested in infrastructure creates about three to four times more jobs than investments in other sectors. Improved infrastructure can also expand access to transportation, healthcare, education services, and boost tourism potential across sites like Kano city or Lagos beaches.
Aart Kraay from the World Bank emphasized: “Infrastructure development is critical to economic growth and development, and it requires a long-term vision and commitment to achieve sustainable development.”
To reach these goals, experts recommend prioritizing collaboration between public and private sectors while ensuring transparency in project execution. Establishing an infrastructure development fund could help mobilize resources for timely completion of future projects.