The credit rating agency, Moody’s said on Sunday Nigeria would require over $3 trillion investment over the next three decades to bridge a yawning infrastructure gap and be at par with its peers in the emerging markets.
In a report released on Sunday, the United States-based firm said feeble institutions and governance frameworks together with a poor tax base are standing in the way of investment in infrastructure in the country.
“Nigeria currently has a significant infrastructure deficit and faces additional pressures from a rapidly growing population.
“Its low government funding capacity and customer affordability have been weakened further by the coronavirus pandemic and low oil prices,” Kunal Govindia, vice-president and senior analyst at Moody’s Investors Service said.
Moody’s observed that in Nigeria expansion in infrastructure had been in railways, power, roads, pipelines and ports and foresaw the pattern would persist especially as Nigeria required massive investment to resolve perennial electricity deficit.
“To this effect, Nigeria’s power sector could benefit from renewable energy like solar and wind, with financing also possible from green bonds.
“Funding from multilateral development institutions, the private sector and non-state investors is recommended for addressing budget challenges in Nigeria.
“Financial guarantors, multilateral development banks and local institutional investors will be important in helping finance infrastructure development,” Moody’s said.
