People who wonder where the next breakthrough in the Nigerian economy will emerge from having watched the telecommunications boom take Nigeria from one of the countries with the lowest phone penetration rate (less than 1%) in 2001 to a nation with the highest number of mobile phone subscribers in Africa (Over 50 million active subscribers) need not ponder further.

I dare say that the biggest breakthrough with a larger than life impact compared to the telecommunications sector is the potential infrastructural development boom which is about to take place in the country we all love so dearly.

Indeed, one of the four main steps to ensure Nigeria jumpstarts its economy in the next decade is to resolve the infrastructural challenge. Others in my opinion are deepening of the regulatory and institutional framework; implementation of a national identification system and resolving the leadership challenge.

The Issues

Tucked right before the bar beach in Lagos is the edifice called the ‘Silverbird Galleria’ which is credited with helping to reinvent the movie going culture among Nigerians. Unfortunately, there is a mere 2-lane road right in front of that facility. The divinely endowed gift at Obudu cattle ranch does not have a daily scheduled flight to the location. Only some months ago, the international airport in Port Harcourt was shut and people especially those in the oil and gas industry had to travel hours by road from the then airport at Enugu (now Akanu Ibiam International airport).

It may surprise many to know that the thousands of telephone masts dotting the roads and suburbs in Nigeria run on generators 24 hours – 7 days a week. The manufacturing hub in Ikeja, Lagos is completely filled with generators and I suspect there are more generators than cars in Nigeria as every household boasts of at least one generator.

The most painful sight to buttress our infrastructural decadence is seen in the Eastern part of Nigeria where just after the rickety River Niger bridge is the ‘Onitsha market’ reputed to be one of the largest markets in Africa.

What to Do

Nigeria at this point is at the threshold of history and must take all necessary steps to vault itself into prosperity. We must fix our decaying or lacking infrastructure.

One fact that comes to mind is that Nigeria has proved consistently that its infrastructure is better managed by the private sector. If you have been to the Murtala Mohammed International airport in Lagos, Nigeria, you would have seen the most magnificent and newest building at the airport complex.

The Murtala Mohammed airport terminal 2 was conceived under the ‘Build-Operate-Transfer’ (BOT) mechanism as part of the government’s initiative to encourage private sector driven management of public infrastructure. A  BOT project is currently being conducted to revamp the road network in the Lekki corridor of Lagos Nigeria.

In the energy sector, there are several power projects being undertaken under the private sector driven independent power program. Only recently a wholly owned Nigerian company involved in the construction and management of power plants in Nigeria completed the construction of an independent power project in Guinea Bissau.

One common factor with the companies mentioned above is that they have been floated by Nigerians.

How to finance

The banks after repeated rounds of consolidation are sitting on a chest looking for investing avenues. I do believe that many banks are opening branches abroad not only because of the need to establish a foreign and international presence but because the Nigerian market does not provide enough investing alternatives. The MMA2 was financed by a consortium of Nigerian banks and the road rehabilitation in the Lekki corridor of Lagos is largely being financed by a couple of Nigerian banks.

In conclusion, no country fast tracks its economic growth without the development of its infrastructure. The ‘quick facts’ table reveals our inadequacies compared to Ghana and South Africa and the need to address this daunting situation. Nigeria must take a cue from China and India, widely referred to as the fastest growing emerging economies in the world as these two countries continue to commit huge funds into infrastructural development.