Nigeria’s infrastructure expenditure to rise as the government seeks to revive growth

16 May 2017

Despite economic woes, infrastructure expenditure in Nigeria is set to increase over the next five years, according to a Timetric’s Infrastructure Intelligence Center.


The infrastructure construction market’s value increased to NGN4.9 trillion (US$16 billion) in 2016 from NGN2.5 trillion in 2011, and is projected to reach NGN6.5 trillion by 2021 (in nominal value terms). This is based on the assumption that a number of major infrastructure projects will proceed as planned, including the East to West Road Dualization, the Coastal Railway Line, the 3050MW Mambilla Hydroelectric Power Plant and the Lekki Deepwater Port. “However, challenges remain: a weakening currency, shortages of US dollars and regulatory uncertainties will continue to negatively impact the sector,” explains Dariana Tani, economist at the Infrastructure Intelligence Center.

 

President Muhammadu Buhari has pledged to concentrate on the rapid development of the country’s infrastructure, especially on critical ongoing infrastructure projects in the roads, railways, power generation and ICT sectors. In December 2016, his administration submitted a budget of NGN7.3 trillion for 2017 – 20.4% higher than 2016 – of which NGN2.64 trillion will be committed for infrastructure spending. In addition, in early March 2017, the government launched the Medium Term Economic Recovery and Growth Plan (ERGP 2017–2020) to address the country’s infrastructure challenges and restore the economy back to growth. The ERGP, which builds on the existing Strategic Implementation Plan for the 2016 Budget, covers strategic objectives required to boost infrastructure investment and revive economic growth. 

 

The government estimates that it needs to invest US$3 trillion in infrastructure over the next 30 years but given the scale of capital required to effectively implement this plan, the private sector is anticipated to play an important role in delivering infrastructure projects either directly or in collaboration with the government. 

 

Timetric is currently tracking 151 large-scale infrastructure construction projects in Nigeria, at all stages of development from announcement to execution. These projects have a total investment value of US$285.3 billion. Rail projects account for the largest share of infrastructure projects in the pipeline, with a total value of US$133.6 billion. This is followed by electricity and power projects with a pipeline of US$121.6 billion. The pipeline value for road infrastructure projects amounts to US$16.2 billion, and for airports and other infrastructure construction projects it stands at US$13.5 billion. For water and sewerage infrastructure construction projects, the total work pipeline stands at U$457 million.

 

Nigeria's Infrastructure Construction Pipeline (US$ Million)

 

 

About this report

 

This information is taken from the Timetric report: ‘Infrastructure Insight: Nigeria’

 

For more information on this and related reports, please visit www.timetricreports.com/search/construction/

 

About the Infrastructure Intelligence Center

 

The Infrastructure IC is the most comprehensive source of data and analysis on the global infrastructure industry.

 

Our unique construction projects database tracks major new projects globally and can be contextualized with our forecasts of future project activity, rich market data and analysis as well as competitive intelligence and company activity to help companies understand market attractiveness and risks, and realise market opportunities.

 

For more information and updates, please visit www.infrastructure-ic.com.

 

About Timetric

 

Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.

 

For more information and updates, please visit www.timetric.com.

 

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Please contact the Timetric press office at press@uk.timetric.com or call +44 (0) 20 3096 5769.

 

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