• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News

Bridging Nigeria’s Infrastructure gap; getting the funding   

CSL Stockbrokers by CSL Stockbrokers
October 29, 2019
in Business News, Markets, Op-Eds, Politics, Research Analysis
Bridging Nigeria’s Infrastructure gap; getting the funding, Businesses exempted from shutdown in Lagos, Abuja and Ogun State
Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s widening infrastructure deficit has been a recurring discourse over the years as it is widely believed that the weak stock of infrastructure investments is one of the biggest challenges to the ease of doing business. However, the question that has often been left unanswered is “how the infrastructure deficit will be financed”?

According to the IMF, Nigeria’s infrastructure stock of c.25% of GDP remains far below the 70% international benchmark. This implies that Nigeria’s public capital stock per head is lower than the global average, a situation that has constrained the growth in GDP and hindered private sector investment.

Recently, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed that the Federal Government will require about N36trn (US$100 billion) annually for the next 30 years to effectively tackle Nigeria’s infrastructure challenges. The Minister further stated that with the shortfall in oil revenue in recent times, it is difficult to address the infrastructural deficit. Capital expenditure in 2018 stood at N820.6 billion (as at 14th December 2018 according to the budget office of the federation), far below the budgeted sum of N2.9 trillion translating to a performance ratio of just 28.6%.

RelatedStories

Why did Legend Internet shares gain 32% in just one week? 

Why did Legend Internet shares gain 32% in just one week? 

June 16, 2025
Weekly Stock Update: Nigerian Exchange Group record growth w-o-w, up by 0.48%

SEPLAT leads value as All-Share Index gains 0.56%, ABCTRANS and BETAGLASS shine 

June 12, 2025

[READ MORE: Inflation quickens to 4-month high of 11.24% on food, utilities]

Taking into cognizance weak government revenue, ballooning recurrent expenditure, and elevated debt servicing costs which has raised concerns on debt sustainability, we think governement lacks the capacity to self-finance the required infrastructure investment.  Consequently, there is the need for the government to consider unconventional methods of financing to bridge this huge infrastructural deficit.

Recently, the Nigerian Stock Exchange announced the listing of the Federal Government N15 billion Green Bond (a 7-year bond issued at a coupon rate of 14.50% on June 13, 2019). This follows the debut Sovereign N10.69 billion Green Bond that was issued in December 2017 and listed on the NSE in July 2018. Green Bonds are targeted towards financing renewable energy, afforestation, and transportation projects.

[READ ALSO: Trade: Customs ban imports and exports via land borders]

Though different from the regular bonds issued by the Federal Government, green bonds still remain debt instruments issued by the Federal Government and will likely put further pressure on the already high debt servicing cost of the government. In our view, creating a strong framework for private sector investments through public-private partnership (PPP) remains the most cost-effective means of bridging the infrastructure deficit in the country.

______________________________________________________________________

CSL STOCKBROKERS LIMITED CSL Stockbrokers,

Member of the Nigerian Stock Exchange,

First City Plaza, 44 Marina,

PO Box 9117,

Lagos State,

NIGERIA.


Follow us for Breaking News and Market Intelligence.
Tags: IMFMrs Zainab AhmedNigeria’s infrastructure deficitNigerian Stock ExchangeOn the Money
CSL Stockbrokers

CSL Stockbrokers

Related Posts

Why did Legend Internet shares gain 32% in just one week? 
Company Results

Why did Legend Internet shares gain 32% in just one week? 

June 16, 2025
Weekly Stock Update: Nigerian Exchange Group record growth w-o-w, up by 0.48%
Equities

SEPLAT leads value as All-Share Index gains 0.56%, ABCTRANS and BETAGLASS shine 

June 12, 2025
Adverse effects of high-interest rate spreads on the Nigerian economy
Financial Services

Fidelity Bank threatens legal remedies over “malicious publication” concerning CEO’s share purchase 

May 24, 2025
Nigeria vs the World Bank: Truth, Myths, and Money Moves – Drinks and Mics
Digital Media

Nigeria vs the World Bank: Truth, Myths, and Money Moves – Drinks and Mics

May 17, 2025
IMF projects reduced economic growth for Sub-Saharan Africa
Economy

Surging electricity demand for AI could create new challenges for global economy – IMF 

May 14, 2025
At IMF Nigeria is winning praise, but the money isn’t flowing—this is why  
Op-Eds

At IMF Nigeria is winning praise, but the money isn’t flowing—this is why  

April 30, 2025
Next Post
Lekoil Nigeria, Cayman subsidiary agree to settle legal dispute 

Lekoil secures $11.5 million facility 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 
  • Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 
  • President Trump’s visa restrictions threaten 16 U.S. colleges depedent on international students 

Follow us on social media:

Recent News

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

Tinubu seeks swift action on ECOWAS Standby Force as insecurity escalates in West Africa 

June 22, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 

Global oil price may surge past $150 per barrel as Iran’s parliament approves closure of Strait of Hormuz 

June 22, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics