Moody’s Investors Service, a Global credit rating agency on Sunday, disclosed that Nigeria’s infrastructure will need $3tn to meet up with other emerging market peers
According to the agency’s first report on the Nigerian infrastructure market, weak institutions and governance frameworks along with a low tax base are obstructing infrastructure investment.
It also added that financially exhausted utilities are unable to invest in improvements.
The Vice President, Senior Analyst at Moody’s Investors Service, Kunal Govindia, stated that the country had deficit infrastructure, which resulted to additional pressures from a rapidly growing population.
He said, “Its low government funding capacity and customer affordability has been weakened further by the COVID-19 pandemic and low oil prices.”
The report also noted that the focus of infrastructure development had been within power, railways, roads, ports, and pipelines.
It added that the focus was expected to continue with particular investment needed to solve 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.”
The Global credit 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.