Global credit rating agency , Moody’ s Investors Service, has stated that the infrastructure in Nigeria is behind other emerging market peers , with about $3tn needed over 30 years to close the gap.
This was disclosed in the agency’ s first report on the Nigerian infrastructure market obtained on Sunday .
According to the report , weak institutions and governance frameworks along with a low tax base are hindering infrastructure investment , while financially strained utilities are unable to invest in improvements .
Commenting , the Vice President , Senior Analyst at Moody’ s Investors Service , Kunal Govindia , noted that the country had an infrastructure deficit, facing additional pressures from a rapidly growing population .
“ Its low government funding capacity and customer affordability has been weakened further by the COVID -19 pandemic and low oil prices, ” he said .
The report noted that the focus of infrastructure development had been within power , railways, roads, ports , and pipelines , adding that the trend was expected to continue with particular investment needed to address Nigeria ’ s electricity shortages.
“ To this effect , Nigeria ’ s power sector could benefit from renewable energy like solar and wind , with financing also possible from green bonds , ” it said .
Also highlighting the budget constraints facing the country , the rating agency noted that addressing this shortfall would require financing from the private sector, multilateral development institutions and other non- state investors.
“ Financial guarantors , multilateral development banks and local institutional investors will be important in helping finance infrastructure development, ” it said .
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