FINANCING MODEL FOR SUSTAINABLE DEVELOPMENT OF INFRASTRUCTURES IN NIGERIA

Abstract

Weak capacity for developing infrastructures in Nigeria is attributable to inadequate long-term funding, poor capital budget implementation, and disconnect of planning and budgeting, among other factors. The paper proposes a simple financing model that aims at mopping up idle funds within the economy for creating secure, accessible, and affordable long-term credit that can be channeled to fund infrastructure development, within an operational environment governed by sound planning, private participation promotion, and commitment to value-for-money assessments. Based on a critical review of the current institutional setting for planning, public finance management, and funds’ custodianship in the country, the paper proposes how the National Planning Commission, the Federal Ministry of Finance, and the Central Bank of Nigeria can be restructured to create a sustainable institutional architecture for financing infrastructural development in Nigeria.