By Peter Osalor

The general state of Infrastructure across the African Continent and especially sub – Saharan Africa is acutely underdeveloped. With the Exception of South Africa, The entire region is bogged down by severe infrastructure deficiencies that have frustrated development programmes and marred growth prospects.

The senior officer of Manufacturers’ Association of Nigeria, Ifeanyi Okoye decries the deficient infrastructure, as well as the high cost of credit: the lack of a supporting environment for entrepreneurs makes manufacturing in Nigeria a kind of “sending citizens to war without arms.”

In June 2009 the World Bank approved a $1 billion loan for Nigeria to find multiple development programmes including expansion and enhancement of the country’s massively deficient power sector. An amount of $200 million was earmarked for investment in networking and technical upgrades to improve electric supply.

While this concessionary, interest – free funding is welcome, it amounts to a tiny fraction of Nigeria’s overall investment requirement in infrastructure. In August 2008, the Nigerian Debt Management Office (DMO) revealed that the country needed at least $ 100 billion in investment to develop four key infrastructure areas – power, rail, roads and oil & gas.

The figure was calculated to align with the ambitious national goal of taking Nigeria to the top – 20 world economies by 2020. Of the four sectors mentioned, power alone would require an estimated investment of between $18 and $20 billion over the next ten years. Currently only 40% of Nigerians have access to electricity.

The collapse of basic infrastructure and social services was set off in the 1980s, when the static oil economy wiped out traditional and emerging livelihoods, creating rampant unemployment, poverty and degraded living standards. Infrastructure declined; for instance, the network is shambles and today accounts for only 1% of national transportation.

The port service likewise suffers severe bottlenecks and inadequate capacity. The over 100,000km long road network is in disrepair at best and barely usable at worst. Because of Nigeria’s strategic location and the abundance of its natural resources, infrastructure development in the country has pan-African relevance. The whole of African receives very nominal foreign private investment in infrastructure due to reasons ranging from high foreign exchange risks to low creditworthiness.

For the most part, the region is dependent on grants- in – aid and soft loans from international development agencies to finance infrastructure, while simultaneously developing avenues for credible local finance is a daunting task. Nigeria needs to lead the way in enhancing access to equity debt as a means of attracting projects with viable private participation.

For Nigeria, the larger impact of infrastructure deficits is the high cost of doing business, for large corporations and small enterprises alike. The government of former President Yar’Adua listed infrastructure development as a cornerstone component of the 2020 goals as well as the Millennium Development Targets.

President Muhammadu Buhari’s 2016 budget address at the National Assembly included a proposal seeking to stimulate the economy, making it more competitive by focusing on infrastructural development, delivering inclusive growth; and prioritising the welfare of Nigerians.

The budget will help Industry, Commerce and Investment to pick up, as a matter of urgency, address problems of youth unemployment and the terrible living conditions of extremely poor and vulnerable Nigerians.

The budget sounds good to hear, but considering the decaying condition of our infrastructures and unimplemented budgets in the past that have resulted to youth unemployment, I urge the federal government to do everything within her powers to make sure it sees the light of the day. If this is done, government can be sure of creating jobs to our teeming jobless youths and reduce unemployment, poverty and crime in the society by entrepreneurial development that will usher in more investments in the economy.