INFRASTRUCTURE CONNECTIVITY AND REGIONAL DEVELOPMENT IN NIGERIA: A FINANCING PERSPECTIVE

Abstract

As Africa’s largest economy and most populous nation, Nigeria’s capacity to build and sustain critical infrastructure is not merely an aspiration but a necessity for sustainable development. This paper examines the nexus between infrastructure connectivity and regional development from a financing perspective, using Nigeria as a case study. Employing a conceptual-descriptive methodology, secondary data from the World Bank, IMF, Debt Management Office, and National Bureau of Statistics were analyzed thematically to highlight financing trends, infrastructure gaps, and regional disparities. The findings reveal that Nigeria faces a massive infrastructure deficit estimated at about US$3 trillion by 2050, with annual investment needs of US$150 billion compared to actual spending of less than 2.5% of GDP. While public financing remains the foundation, it is inadequate given fiscal constraints, high debt servicing, and oil revenue volatility. Alternative models such as Public-Private Partnerships (PPPs), Sukuk bonds, and blended finance show promise but are hampered by weak institutions, regulatory inconsistencies, and macroeconomic volatility. The paper concludes that Nigeria requires a multi-pronged financing strategy that combines innovative instruments, strong governance, and institutional reforms to close its infrastructure gap, reduce regional disparities, and unlock balanced growth. Policy recommendations include scaling up blended finance, strengthening PPP frameworks, expanding domestic capital markets, and ring-fencing funds for infrastructure maintenance.