Robust infrastructure could put millions of Nigerians to work in decent paying jobs. Electricity is crucial to fuel the economic growth of a country; a road improves productivity; Schools increase education levels and productivity. And so on. These all have important medium- and long-run implications for an economy.
A key benefit of infrastructure, especially transport infrastructure, is the reduction of transport costs, which helps to create new markets, fuels further agglomeration, which in turn fosters competition, spurs innovation, lowers prices and raises productivity, leading to an increase in living standards.
Group Executive Vice Chairman, SIFAX Group, Dr. Taiwo Afolabi, cautioned recently that the lack of critical infrastructure could hinder the success of the federal government’s drive to improving the ease of doing business in the country and urged that the problem of infrastructure deficit should be urgently addressed in order to compliment the executive orders signed recently by the acting President.
To spur economic growth and development, the federal government has taken the bull by the horn and has taken steps to bridge the infrastructure deficit.
At the third Nigerian Stock Exchange (NSE) & Bloomberg Chief Executive Officer Roundtable in Lagos recently, the Minister of Finance, Mrs. Kemi Adeosun had said the federal government was commitment to infrastructure development and economic diversifying. She said about N200billion was invested on roads in 2016.
Adeosun said the N200 billion, which was an increased on the N90 billion spent in 2015, is out of the N1.2 trillion earmarked for capital projects to ensure ease of doing business.
According to the minister, the government will continue to prioritise infrastructure development to unlock growth potential, pointing out that the diversification of the economy would not be achieved without a good transportation system and power supply to improve ease of doing business.
The minister said the country was very vast and to actualise her potential, infrastructure development was very crucial for sustainable growth and development.