World Bank has lamented Nigeria’s infrastructure quality, saying it is very low in spite of the Federal Government’s claim of borrowing to finance it.
In its Nigeria public finance review report, the Washington-based financial institution said Nigeria’s physical infrastructure gap would likely reach $3 trillion in the next 30 years.
“The level and quality of Nigeria’s infrastructure quality is low, with the country ranked 132 out of 137 countries for infrastructure in the 2018 Global Competitive Index. Nigeria’s physical infrastructure gap is estimated to reach $3 trillion over the next 30 years,” the report read.
It added that Nigeria’s development outcomes were among the lowest globally, which indicated high public spending needs.
The Washington-based bank also noted that it would take Nigeria 300 years to close the infrastructure gap, which would cost the country 4% of its GDP yearly.
The World Bank report read, “At the current rate of expenditure allocation, it would take 300 years to close the country’s current infrastructure gap. Closing Nigeria’s infrastructure gap would cost at least four percent of GDP growth per year.”
Nigeria’s debt portfolio
The Debt Management Office (DMO) reported that Nigeria’s total debt as of June 30, 2015, stood at N12.12 trillion. By June 30, 2022, the figure had risen to N42.84 trillion, which showed an increase of 253.47%.
BizWatch Nigeria understands that in spite of this, the government eyes N8.4 trillion credit facility in 2023.
Buhari defends borrowings
President Muhammadu Buhari recently defended his government’s borrowing, describing it as a necessary step to provide the infrastructure that would expand opportunities for the growth of the Nigerian economy.
“We have also continued to accelerate our infrastructure development through serviceable and transparent borrowing, improved capital inflow, and increased revenue generation by expanding the tax bases and prudent management of investment proceeds in the Sovereign Wealth Fund,” Buhari added.
