Regulatory uncertainty is deterring private capital investment in Nigeria’s agricultural and infrastructure sectors, according to a report produced by Oxfam International.
The newly released report, titled “Financing for Development in Nigeria: Sectoral Context and Insights for the Fourth International Conference on Finance for Development 2025,” was published on Oxfam’s website on May 13, 2025.
Regarding agriculture, food security, and infrastructure in Nigeria, the report highlighted that public finance alone is inadequate to meet the scale of investment required for Nigeria’s infrastructure needs.
Findings
The report stated that while Nigeria’s infrastructure deficit exceeds $100 billion annually, according to data from the African Development Bank (AfDB 2022), access to reliable electricity remains below 50%. Despite reforms, this continues to constrain industrial productivity.
“Rural road networks and transport corridors remain largely dilapidated, affecting both the mobility of people and market access,” it added.
- The report highlighted that in states like Bayelsa and Benue, limited road and energy infrastructure severely restrict access to markets and services required to connect key hubs of the country.
“Meanwhile, weak PPP frameworks and regulatory uncertainty deter private capital investment,” it added.
- The report observed that climate change, poor irrigation infrastructure, and insecurity in farming regions exacerbate food insecurity and negatively impact Nigeria’s earnings from agriculture.
Recommendations
- To address these issues affecting food security and infrastructure, the report advised that Nigeria must prioritize agriculture in both public budgets and credit markets.
“A national agro-financing facility backed by sovereign guarantees could crowd in private finance.
“Climate-resilient agriculture should be mainstreamed in green bond issuances, and targeted subsidies should be redirected toward productivity-enhancing investments,” it added.
- The report recommended that infrastructure financing must combine concessional finance, infrastructure bonds, and Public-Private Partnership (PPP) models underpinned by transparent governance.
- It highlighted that dedicated infrastructure funds-possibly housed within the Nigeria Sovereign Investment Authority (NSIA)-can serve as vehicles to mobilize long-term capital, especially from pension funds and diaspora investors.
More Insights
Earlier this year, Connected Development (CODE), in partnership with Oxfam International, released a report stating that Nigeria “received” $4.928 billion for 828 climate-related projects between 2015 and 2021.
While key sectors such as agriculture, energy, and water have benefited from international support, the report emphasized gaps in mobilizing domestic resources and ensuring effective governance at both national and sub-national levels.
“The top sectors funded by climate finance in Nigeria include Agriculture, Forestry, and Other Land Uses (AFOLU), Energy, Water and Sanitation, Education, and Financial Services,” it stated.
Despite Nigeria’s heavy reliance on international providers for climate finance, with limited contributions from domestic investments, the report stressed the need for improved policy integration, strengthened climate governance, and greater empowerment of sub-national governments.
