Eugene Itua & Maximus Ugwuoke

Nigeria stands at a pivotal crossroads. With an infrastructure deficit estimated at $3 trillion over the next 30 years, the country faces a formidable barrier to economic growth and progress toward the attainment of Sustainable Development Goals (SDGs). Currently, Nigeria’s infrastructure stock is just 30% of GDP, far below the 70% benchmark recommended by the World Bank. 

Yet, recent macroeconomic reforms initiated since mid-2023 have opened a critical—though time-sensitive—window to rewrite this narrative. The challenge is no longer identifying the need, but executing a strategy that attracts investment at scale. Given fiscal constraints, mobilising private capital is not optional—it is imperative! 

This action plan outlines a three-pillar roadmap to translate Nigeria’s infrastructure ambitions into reality: strengthening institutions, mobilising innovative finance, and embedding sustainability into the nation’s development DNA. 

Pillar I: Forging a Foundation of Trust – The Institutional Reform Imperative 

Finance may fuel infrastructure, but institutions form the chassis. For private investors, institutional risk is often the decisive factor. Institutional reform is not a policy aspiration—it is a financial strategy. 

Strengthen PPP Project Preparation & Bankability: Nigeria’s PPP pipeline is rich in potential but poor in execution. Many projects fail to reach financial closure due to weak feasibility and risk modelling. Establishing and capitalising a Project Development Facility (PDF) is a top priority. This facility would fund rigorous feasibility studies, financial modelling, and risk assessments to convert concepts into credible, investment-ready projects. 

Improve World Governance Indicators: World Bank data confirms that institutional quality is the single most important driver of private infrastructure investment. Nigeria must target improvements in Regulatory Quality and the Rule of Law, with a focus on judicial independence and contract enforcement. These reforms will send a strong signal to global capital markets and could unlock billions in annual investment. 

Enhance Regulatory Capacity: Institutions like the Infrastructure Concession Regulatory Commission (ICRC) must be equipped with the technical expertise and resources to oversee complex, long-term concession agreements. A stable, transparent regulatory environment builds investor confidence and ensures accountability. 

Pillar II: Powering Progress – Mobilising Innovative Finance

To meet its infrastructure needs, Nigeria must expand beyond traditional funding models and embrace a diverse, sophisticated financing toolkit. 

Operationalise the Nigerian Climate Investment Platform (NCIP), led by the Nigeria Sovereign Investment Authority (NSIA), the NCIP aims to mobilise $500 million in its initial phase for climate-aligned projects. Its full activation is a short-term priority to attract co-investment from domestic and international partners. 

Scale Up Sovereign Sustainable Bond Issuance: As Africa’s first sovereign green bond issuer, Nigeria has a head start. The government should now leverage its Sovereign Sustainable Bond Framework to issue regular, large-scale green, social, and sustainability bonds—funding eligible budget projects while tapping into ESG-focused global capital. 

Unlock Domestic Pension Funds: Nigeria’s vast pension assets remain underutilised. Regulators like PENCOM and SEC, alongside entities such as InfraCorp, must develop investment vehicles—e.g., listed infrastructure funds and bonds—that align with institutional investors’ risk-return profiles. This is the cornerstone of a resilient, self-financing strategy. 

Pillar III: Building for Tomorrow – Integrating Climate and Biodiversity 

In the 21st century, ignoring environmental risks in infrastructure planning is fiscally reckless. Sustainability must be the compass guiding every investment decision. 

Mandate Climate Risk Screening: Nigeria faces acute climate threats—from coastal flooding in Lagos to desertification in the north. Updating Public Investment Management (PIM) guidelines to require climate risk screening for all major projects will prevent stranded assets and embed climate adaptation into fiscal policy. 

Align Infrastructure and Biodiversity Plans: Infrastructure is a leading driver of habitat loss. Nigeria’s updated National Biodiversity Strategy and Action Plan (NBSAP) must be integrated with the National Integrated Infrastructure Master Plan (NIIMP). A formal inter-ministerial working group should ensure biodiversity impact assessments are mandatory and meaningful. 

Develop a National Green Infrastructure Strategy: Green infrastructure must extend beyond renewable energy. Nigeria should invest in nature-based solutions—like mangrove restoration for coastal defence, wetland protection and restoration, as well as watershed protection for water security. These approaches often deliver superior development outcomes while enhancing climate resilience, biodiversity, and livelihoods. 

Conclusion: A Window of Opportunity, A Call to Action 

The recent macroeconomic reforms have laid the groundwork. But this window will not remain open indefinitely. Sustained political will, institutional reform, and strategic execution are now essential.

By advancing these three pillars in parallel—institutional strengthening, financial innovation, and environmental integration—Nigeria can transform its infrastructure landscape and build the resilient, inclusive future its citizens deserve.

The time for action is now.

Dr. Itua and Ugwuoke are both of Africa Green Economy and Sustainability Institute

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