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EXPLORING THE POTENTIAL OF INFRASTRUCTURE INVESTMENTS IN NIGERIA

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EXPLORING THE POTENTIAL OF INFRASTRUCTURE INVESTMENTS IN NIGERIA

EXPLORING THE POTENTIAL OF INFRASTRUCTURE INVESTMENTS IN NIGERIA

INTRODUCTION

Any country’s economic progress and social improvement depend heavily on the development of its infrastructure. Infrastructure improvements are crucial in Nigeria because of its fast expanding population and diverse economy. The government and private sector organizations can unleash a wealth of potential and pave the way for sustainable economic development by correcting the inadequacies and flaws in Nigeria’s infrastructure. This article brings to limelight, an exposition of this potential as it relates to Nigeria and the globe at large.

 

MEANING AND PERSPECTIVE

Typically, the phrase “infrastructure” refers to a broad range of industries, including transportation (roads, bridges, trains, airports, and ports), energy (power plants), and water and sanitation (dams, reservoirs, water treatment facilities), communication (telecommunication networks, internet access), and social infrastructure (schools, hospitals, public housing) are all examples of infrastructure.

A country’s or region’s physical systems and structures that support economic activity and social well-being can be developed or improved through infrastructure investment. This can be done by governments, private companies, or people.

EXPLORING THE POTENTIAL OF INFRASTRUCTURE INVESTMENTS IN NIGERIA

EXPLORING THE POTENTIAL OF INFRASTRUCTURE INVESTMENTS IN NIGERIA

infrastructure investment could also mean the construction or improvement of physical systems and structures. It involves the deliberate allocation of resources with the goals of promoting economic growth, enhancing quality of life, generating jobs, delivering public services, and attaining long-term sustainable development. It supports both short-term necessities and long-term aspirations, playing a critical role in forming economies and civilizations.

 

SCOPE

  1. Transportation Infrastructure: This category covers investments in public transit, airports, highways, bridges, trains, and seaports. The movement of goods and people is supported by the expansion and improvement of transportation infrastructure, which also improves connectivity and cuts down on trip times.
  2. Energy Infrastructure: This involves investments in power plants, transmission and distribution networks, renewable energy projects, and oil and gas pipelines. Developing energy infrastructure ensures a reliable and stable supply of electricity and fuels, supports industrial activities, and promotes the transition to cleaner and more sustainable energy sources.
  3. Water Infrastructure: The construction and maintenance of water supply systems, wastewater treatment facilities, dams, reservoirs, irrigation networks, and drainage systems are the key objectives of investments in water infrastructure. Key factors in this area include ensuring access to clean water, enhancing water resource management, and reducing the risk of flooding.
  4. Communication and Information Technology Infrastructure: This includes investments in telecommunication networks, internet connectivity, data centers, and digital infrastructure. Expanding and upgrading communication infrastructure improves connectivity, facilitates access to information and digital services, and supports the development of a digital economy.
  5. Social Infrastructure: Schools, hospitals, healthcare facilities, public housing, community centers, and recreational areas are all included in investments in social infrastructure. Building and maintaining social infrastructure helps to support the delivery of basic services, encourages access to healthcare and education, and promotes social inclusion and well-being.

6.Environmental Infrastructure: This entails funding infrastructure initiatives with the goal of addressing and reducing environmental problems. This includes initiatives for trash disposal, recycling, the production of renewable energy, and environmentally friendly transportation systems.

  1. Urban Infrastructure: The development and enhancement of cities, including their roadways, transportation networks, housing stock, public areas, and utilities, are the main goals of investments in urban infrastructure. Urban infrastructure initiatives seek to improve livability, advance sustainable urbanization, and tackle the problems brought on by fast urbanization.
  2. Industrial Infrastructure: This includes spending on facilities like industrial parks, logistics and warehousing facilities, specialized manufacturing zones, and research and development facilities that are intended to support industrial activity. The objectives of these investments are to draw in new companies, promote industrial expansion, and encourage innovation and competitiveness.
  3. Rural Infrastructure: The connectivity, access to services, and quality of life in rural areas are the main goals of investments in rural infrastructure. To close the gap between urban and rural development, investments should be made in rural roads, irrigation systems, agricultural infrastructure, and socioeconomic services.
  4. Resilient and Green Infrastructure: With an increased emphasis on sustainability and reducing climate change, investments in infrastructure increasingly give resilience and environmental factors first priority. This involves funding for projects utilizing renewable energy, developing greener infrastructure, and utilizing natural methods to combat climate change. increase ecological sustainability and reduce dangers.

 

CHALLENGES AND INADEQUACIES IN NIGERIA’S INFRASTRUCTURE

Nigeria’s infrastructure is plagued by a number of problems that impede economic growth and development. Several of these difficulties include:

  1. Insufficient Investment: There is a substantial disparity between Nigeria’s infrastructure needs and the funding allotted to meet those needs. Infrastructure is degrading as a result of a lack of maintenance and upgrades caused by inadequate funding.
  2. Poor Maintenance: The upkeep of current infrastructure is frequently disregarded, which causes rapid deterioration. Numerous public facilities, including roads, bridges, and buildings, are in need of maintenance, which compromises their usability and safety.
  3. Insufficient Power Supply: Nigeria’s infrastructure for power generation and distribution is insufficient to meet the nation’s demand for electricity. Industrial operations are hampered by frequent power outages and unstable supply. productivity and slow down economic expansion.
  4. Inadequate Transportation Network: Nigeria’s transportation system is inefficient, with clogged roads, sparse train service, and out-of-date ports. This restricts commercial opportunities, increases transportation expenses, and obstructs the movement of people and products.
  5. Inadequate Water And Sanitation Services: There are numerous sections of Nigeria that lack access to clean water and sanitary services, especially in rural areas. Public health is impacted, waterborne illnesses are spread, and productivity and economic growth are hindered.
  6. Limited Access to ICT Infrastructure: Internet connectivity and ICT infrastructure access are both problematic, particularly in rural areas. This digital gap reduces prospects for innovation and entrepreneurship, slows the development of the digital economy, and limits access to online services.
  7. Inadequate Social Infrastructure: Nigeria lacks the necessary social infrastructure, such as affordable housing, hospitals, and schools. Inadequate access to housing, healthcare, and education results from this, especially for underprivileged people.
  8. Inadequate Industrial Infrastructure: The growth and diversification of the industrial sector are hampered by the absence of specialized industrial zones and accompanying infrastructure. Investment and employment growth are restricted by the lack of adequate infrastructure for manufacturing and transport.
  9. Insecurity: In some areas, insurgency and banditry have an impact on the infrastructure’s functionality and safety. Infrastructure development is hampered, investors are scared away, and transit systems are disrupted.
  10. Climate Vulnerabilities: Nigeria is vulnerable to erosion and flooding brought on by climate change. The impact of such catastrophes is made worse by inadequate infrastructure resilience to climate hazards, which causes interruptions and infrastructure damage.

 

BENEFITS AND OPPORTUNITIES OF INFRASTRUCTURE INVESTMENTS

Infrastructure expenditures provide countries with a variety of advantages and opportunities, including:

  1. Economic Growth and Productivity: Nigeria might increase its productivity potential through infrastructure investment, luring in foreign direct investment and promoting economic growth. Roads, trains, and airports that are improved would make it easier to transfer people and commodities, lower transportation costs, and boost trade and commerce.
  2. Job Creation: Investments in infrastructure have the potential to generate jobs in a variety of industries, including construction, engineering, and maintenance. More Nigerians would be employed as projects got underway, reducing poverty and raising income levels.
  3. Improved Services: The delivery of fundamental services including water supply, sanitary conditions, medical care, and education would be improved by robust infrastructure development. getting to Citizens who receive quality healthcare and education will be more skilled and healthy, accelerating socioeconomic advancement.
  4. More Investment and Business Opportunities: Investments from both domestic and international sources are attracted by adequate infrastructure. Nigeria would become more business-friendly if it had dependable power supplies, updated transportation systems, and effective telecommunications infrastructure. This would encourage greater private sector investment and economic diversification.
  5. Regional Integration: West Africa’s regional integration would be strengthened by well-developed infrastructure. Nigeria is an important participant in regional trade and connectivity due to its advantageous position and size. Well-thought-out infrastructure improvements might greatly enhance connectivity with other nations, fostering trade and fortifying economic ties.
  6. Improved Connectivity: Infrastructure investments boost connectivity, facilitating smooth regional and interregional transportation of people and products. Networks of transportation that are well-connected save Access to markets, services, and resources will be improved along with reduced travel times and transportation costs.
  7. Greater Livability: Community quality of life is improved by investments in social infrastructure including schools, hospitals, and housing. Access to high-quality healthcare and educational institutions enhances the development of human capital, while adequate living conditions are ensured by inexpensive housing.
  8. Increased Trade and Investment: Strong infrastructure promotes global trade and draws in foreign capital. Reduced trade barriers, fewer logistical costs, and a reliable power supply are all factors that make a country more appealing to enterprises wishing to invest.
  9. Sustainable Development: Infrastructure investments offer chances to adopt eco-friendly procedures and tools. Green infrastructure initiatives, such as eco-friendly transportation networks and renewable energy systems, help to mitigate negative environmental effects and achieve long-term sustainability. aims for development.
  10. Technological Advancements: Infrastructure expenditures frequently entail implementing fresh ideas and inventions, which fuels technological progress. For instance, spending money on digital infrastructure facilitates broadband network expansion, enabling connectivity online and the expansion of the digital economy.
  11. Increased Resilience: Infrastructure improvements can increase a nation’s resistance to climate change and natural disasters. It is possible to safeguard communities, prevent infrastructure damage, and lessen vulnerability to extreme weather events by designing infrastructure with climate resilience in mind.
  12. Social Inclusion: By giving excluded people access to essential services, infrastructure investments can promote social inclusion. By constructing facilities like schools and hospitals in rural or neglected areas, we can guarantee that everyone has access to these necessities.
  13. Regional Development: Infrastructure investments promote balanced regional development by connecting remote areas with urban centers and fostering economic activities outside major cities. This helps reduce regional disparities and encourages growth in underserved regions.

 

GOVERNMENT INITIATIVES AND POLICIES

The Nigerian government has introduced a number of measures and policies to draw investments and fill in infrastructure gaps as a result of realizing the importance of infrastructure development. The Presidential Infrastructure Development Fund (PIDF), the Road Infrastructure Tax Credit Scheme, and the National Integrated Infrastructure Masterplan are notable efforts. These programs attempt to mobilize resources from the public and private sectors to finance and carry out vital infrastructure projects in a variety of industries.

PPPs, or public-private partnerships, have grown in popularity as a way to fill the infrastructure gap. These alliances entail cooperation between the public and commercial sectors in order to develop, run, Infrastructure developments must be maintained. PPPs offer chances for private sector involvement in infrastructure development, relieving pressure on public budgets and utilizing the efficiency and know-how of the private sector.

 

CONCLUSION

For Nigeria to overcome the obstacles provided by poor infrastructure and realize its enormous economic potential, infrastructure improvements are essential. Nigeria can support economic growth, create jobs, and enhance the quality of life for its population by enhancing digital connection, addressing power shortages, enhancing transportation networks, and ensuring adequate water supply and sanitation systems. Public-private partnerships, investor-friendly laws, and the government’s commitment to infrastructure development pave the way for a better future for Nigeria’s economy and its people.

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BUSINESS

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

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African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

The African Development Bank (www.AfDB.org) and the government of Chad have signed a grant agreement worth $44.9 million to finance the asphalting of the 49.5-kilometre Kyabé-Mayo section of the Kyabé-Singako road, including the construction of a 55-metre bridge.

The agreement was signed in N’Djamena on 19 February 2025 by Tahir Hamid Nguilin, Minister of State for Finance, Budget, Economy, Planning and International Cooperation, and Claude N’Kodia, the Bank’s Acting Representative in Chad. Several members of the Chadian government were also present, including the Minister for Infrastructure, Access-Improvement and Road Maintenance, Amir Idriss Kourda, and the Secretary of State for Finance and Budget, Ali Djadda Kampard. Also present was a delegation from the International Monetary Fund, led by its head of mission for Chad, Julien Reynaud,

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

African Development Bank signs $45 million grant agreement with Chad for asphalting of the Kyabé-Mayo road section

The funding will support one of the Chadian government’s key development objectives through strategic infrastructure improvement.

“The [Moyen-Chari] region, including Kyabé, Singako and Am Timan, has strong economic potential. It is Chad’s main agricultural basin and livestock area, rich in fish resources. Fish are supplied from Moyen-Chari to a large part of the country’s south and even to foreign markets,” stated Nguilin, also the Bank’s Governor for Chad.

The road project will open up southern and eastern regions of Chad, reduce vulnerability, and strengthen the resilience of local populations, especially women and young people. It will improve the transportation of goods and people between Kyabé and Singako by providing an all-weather road, facilitating the flow of agricultural and animal products from the rich areas of Moyen-Chari and Salamat to the consumer centers of Sarh, Moundou, N’Djamena and Abéché. It will also enhance accessibility to Moyen-Chari from neighboring Sudan.

The agreement paves the way for support from the Islamic Development Bank to finance the second section of the 205-kilometer Mayo-Singako-Am Timan at an estimated cost of $275.5 million.

“The African Development Bank is a strategic partner of Chad, particularly in the transport sector. The construction of the road section will reduce the overall cost of transport in Moyen-Chari […] and improve the living conditions of local people thanks to easier access to health and education facilities and to the country’s main consumer centers,” said N’Kodia.

The Kyabé-Mayo section of the Kyabé-Singako road is one of the missing links in the N’Djamena-Moundou-Sarh-Kyabé-Am Timan-Abéché corridor and forms part of the priority structuring network that the Chadian government aims to develop to ensure nationwide coverage and permanent accessibility.

The African Development Bank Group remains a strategic financial partner for Chad, with its strategy paper focusing on two priority pillars: developing infrastructure to achieve strong and diversified economic growth and promoting good governance to increase the effectiveness of public action and the attractiveness of the economic environment.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).
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The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

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The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB), has reinforced its position as a key player in the Islamic syndications market, achieving prominent rankings in the 2024 Bloomberg and Refinitiv League tables.

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

For the fourth consecutive year, the ITFC top-tier performance reflects a strategic focus on delivering impactful trade finance solutions. For 2024, Refinitiv ranked ITFC as Globally # 1 Bookrunner and Mandated Lead Arranger (MLA) in their Islamic Syndications League table. Additionally, and Bloomberg also ranked ITFC among the top Bookrunners and MLA in the Islamic Syndications League table. These rankings are a testament to the ITFC ability to consistently deliver value-driven results and maintain a strong position among leading international and regional financial institutions.

The recognition from Refinitiv and Bloomberg confirms that ITFC is a key player in facilitating trade among OIC member countries. This not only reaffirms the ITFC status as the pre-eminent provider of trade solutions but also underscores its remarkable ability to draw investments from a wide spectrum of global investors and financial institutions.

Additionally, it emphasizes the positive impact on the lives and livelihood of people inherent in the ITFC business operating model, demonstrating its effectiveness in meeting the unique financial needs of OIC member countries.

The Refinitiv and Bloomberg League tables rank banks and financial institutions based on their performance in loan syndications, bonds, and mergers and acquisitions (M&A) transactions. The rankings, including arrangers, bookrunners, administrative agents, and advisors, are published quarterly and annually.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.
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Network International appointed as Payment Processing Partner by MTN Group Fintech

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Network International appointed as Payment Processing Partner by MTN Group Fintech

Network International (Network) (www.Network.ae), a leading enabler of digital commerce across the Middle East and Africa (MEA), has been appointed as a Payment Processor – Issuing partner for MTN Group Fintech, Africa’s leading mobile financial services provider. This partnership marks a significant extension of Network’s portfolio of issuer processing collaborations throughout the African continent.

Network International appointed as Payment Processing Partner by MTN Group Fintech

Network International appointed as Payment Processing Partner by MTN Group Fintech

With a footprint spanning over 50 countries and serving over 250 financial institutions, Network International brings its expertise to this partnership which will enhance MTN Fintech’s cutting-edge mobile services and provide even greater value to stakeholders and customers across Africa.

The partnership will focus on rolling out card issuance products across key MTN Fintech markets, starting with Rwanda which is already operational. Soon   Uganda, Ivory Coast, and Nigeria will also be covered under this collaboration.  Network International will provide a comprehensive range of services, including transaction processing, card management and online fraud prevention. MTN Fintech users will benefit from a seamless experience accessing both traditional mobile services and innovative digital payment solutions.

Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing at Network International commented: “Our collaboration with MTN Group Fintech marks a major milestone for our outsourced payments services in Africa. It demonstrates our ability to successfully serve Mobile Network Operators (MNOs) via our fully-fledged processing solutions and our continued dedication and commitment to the African region. We are excited to support MTN Group Fintech’s growth strategy, and its business development plans across the continent.”  

Cedric N’guessan, Executive for Payment and E-commerce at MTN Group Fintech added, “This collaboration with Network International is pivotal in enhancing financial inclusion across Africa and beyond. It enables our customers to actively engage in the global economy, aligning perfectly with our strategic goals alongside Mastercard to broaden access to digital financial services across the continent.” Read More (https://apo-opa.co/43aKuII)

MTN Group provides voice, data, fintech, enterprise wholesale and API services to more than 288 million customers in 14 African markets.

Distributed by APO Group on behalf of Network International.
About MTN Group Fintech:
MTN Fintech, the platform business of MTN Group, is dedicated to revolutionising global financial services through innovative digital technology solutions. Leveraging MTN’s extensive reach and expertise in telecommunications, MTN Fintech is committed to advancing financial inclusion for all and empowering communities in Africa. With a primary focus on pioneering mobile financial services, digital payments, e-commerce, short-term insurance, and remittance capabilities, MTN Fintech strives to establish seamless, accessible, and secure financial ecosystems that shape the future of digital finance.

About Network International:
Network International is the Middle East and Africa’s largest and leading digital payments company. Our purpose is to help businesses and economies grow by simplifying payments and commerce. We operate in 50+ countries serving governments, banks, fintechs, merchants and public sector companies. We have 2,000+ employees based in our markets serving over 250 financial institutions and 130,000+ merchants.

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