Stakeholders have emphasised the critical role of infrastructure development in driving Nigeria’s socioeconomic prosperity.
They spoke at the KENNA Colloquium on infrastructure development held in Enugu State with the theme, ‘Support Mechanisms for Infrastructure Development and Financing’.
The discourse highlighted the need for innovative financial models and collaborative frameworks to address the infrastructure deficits in the region and the country as a whole.
The colloquium focused on how infrastructure initiatives can act as catalysts for broader societal advancement, identifying specific areas requiring substantial infrastructure development while offering unique solutions to the challenges.
Deputy Governor of Enugu State, Ifeanyi Ossai, representing Gov. Peter Mbah as the Special Guest of Honour, emphasised the government’s commitment to creating an enabling environment for infrastructure investment and economic prosperity by focusing on the fundamentals of socio-economic growth.
Ossai said: “While taxation is a source of raising funds for infrastructure projects, there is a limit to how much we can tax. Therefore, we are creating an enabling environment to encourage businesses to invest not just in infrastructure development, but in different sectors – to create wealth for the entire state.
“It is for this reason that this administration is investing heavily in education and healthcare to reduce the exposure of families to fundamentals that drain their pockets, thereby leading to the growth of businesses and Micro, Small and. Medium Enterprises (MSMEs),” he said.
Senior Partner at KENNA, Prof. Fabian Ajogwu, emphasised the need to strengthen and expand the legal and regulatory framework for infrastructure development in the state.
Ajogwu, a Senior Advocate of Nigeria (SAN), stated that a robust framework will provide stability, transparency, and security for investors, boosting their confidence to invest in the State as a corollary.
“Enugu State should consider establishing a state-level infrastructure fund; a pooled, ring-fenced, and independently managed fund with clear governance structures. The Fund, which could be named the Enugu State Infrastructure Fund, offers a more predictable financing mechanism than traditional borrowing and federal allocations, while also granting the state more autonomy over how it utilises its funds.
“The state is also encouraged to expand financing to include public-private partnerships (PPPs), state-issued infrastructure bonds, blended finance structures and leverage green finance for sustainable projects,” he said.
Ajogwu cited instances of states that have leveraged PPPs to great effect. These, he said, include the Azura-Edo Independent Power Project as well as the partnership between MTN Nigeria and the Lagos State Government on MyLagosApp.
He also commended the strides made by the Enugu State government on the gas and power generation fronts since the passage of the Nigerian Electricity Act 2023.
In 2024, the Enugu State Government announced plans to allocate N20 billion to security and infrastructure development.
However, with the disclosure that the country requires an estimated $3 trillion yearly to bridge the national infrastructure deficit, the allocation of the state will fall short of the demand.
