How private sector can bridge Nigeria's infrastructure gap

Nigeria faces a significant infrastructure deficit, with estimates suggesting that about 31 trillion naira is needed to bridge the gap. Economic experts emphasize the crucial role of the private sector in driving infrastructure growth in the country. Opuiyo Oforiokuma, the Managing Director and CEO at ARM-HARITH Infrastructure Investment, sheds light on how the private sector can be actively engaged to address this pressing issue. Oforiokuma highlights the importance of a strong legal and regulatory framework to attract private investment in any territory. While legislative bills paving the way for private sector involvement have been passed, he stresses that a broader risk assessment is critical. The behavior of government and private investors in fulfilling their contractual obligations also plays a pivotal role in fostering a conducive investment environment. Oforiokuma underscores the significance of governments providing security, such as guarantees, to mitigate risks and boost investor confidence. Reflecting on past experiences, Oforiokuma acknowledges improvements in government support for infrastructure projects like the Azure ADIPP, a power generation plant currently under construction. However, he notes that challenges persist, requiring ongoing adaptation to economic dynamics, including fluctuating oil prices and foreign exchange rates. Continuous dialogue and collaboration between stakeholders remain paramount to address evolving challenges. In terms of funding, the private sector seeks assurances from the government, particularly regarding risk management and fair distribution of responsibilities. Oforiokuma stresses the need for a balanced approach where both parties engage in constructive dialogue to build trust and ensure sustainable infrastructure development. As the government advances regulatory frameworks and invites private sector participation, a collaborative effort is essential to navigate the complexities of infrastructure financing. Oforiokuma expresses interest in investing in transportation infrastructure, citing the government's focus on railway projects as an attractive opportunity. Recognizing the capital-intensive nature of rail infrastructure, he emphasizes the necessity of patient capital for long-term projects. Infrastructural investments demand commitment across various stages, from development and construction to operational phases, each requiring distinct investment strategies. While Oforiokuma acknowledges the historical appetite for investment in Nigeria, he remains cautiously optimistic about the future. He commends the government's determination to enhance infrastructure development but underscores the need for sustained collaboration akin to a long-lasting marriage. Success in bridging Nigeria's infrastructure gap hinges on the collective efforts of public and private stakeholders working in tandem to drive sustainable growth and development.