Nigeria’s low capital spending would take 300 years to close infrastructure gap,World Bank warns

Nigeria’s low capital spending would take 300 years to close infrastructure gap,World Bank warns

The World Bank says capital expenditure by the Nigerian government is among the lowest globally, warning that with the current rate of capital spending, it would take 300 years to close the country’s infrastructure gap.

Shubham Chaudhuri,  the World Bank country director for Nigeria, stated this while presenting a keynote address  at the annual banking and finance conference held recently  in Abuja.

Capital expenditure, according to Business Standard,  is the money spent by the government on the development of machinery, equipment, building, health facilities, education, etc. It also includes the expenditure incurred on acquiring fixed assets like land and investment by the government that gives profits or dividends in future.

Chaundhuri, in his presentation document, underscored Nigeria’s dire need for increased public spending, noting that investment spending in Africa’s largest economy lags those in other countries like Indonesia, Ghana, Egypt, and Kenya, resulting in poor quality of and access to infrastructure.

Chaudhuri noted that Nigeria’s government revenues are one of the lowest in the world between 2015 and 2021, adding that low revenues are the key risk to fiscal and debt sustainability.

The World Bank leader for Nigeria further noted that access to finance is abysmally low, which further restricts the private sector’s ability to invest, grow, and generate jobs.

In his recommendations , Chaudhuri emphasised that for Nigeria to achieve steady growth and prosperity, both the federal and sub-nationals must take critical steps to ensure the country’s security, political stability, and the rule of law.

He also advised policy makers  to invest in human capital, particularly in children, unleash the potential of private investment, promote job creation, and enhance access to finance.

Chaudhuri also emphasised that Nigeria’s journey to steady growth and prosperity hinged on essential measures taken by both federal and state governments, including ensuring security, political stability, and the rule of law.