Nigeria has
significant infrastructure investment gap put at $878 billion out of $97
trillion global needs, to address economic growth and existing shortfalls from
now till
2040.
This is
necessitated by a growth forecast at a yearly average rate of 4.1 per cent of
Gross Domestic Product (GDP) and population increases at a yearly rate of 2.4
per cent during the same period.
Yesterday, a
report by G20’s Global Infrastructure Hub (GI Hub), covering infrastructure
investment needs globally and individually for 50 countries and seven sectors,
said Nigeria’s share of the global gap also include, electricity spending at
over $267 billion by 2040.
According to
the report, every year, $3.7 trillion is expected to be invested in
infrastructure to meet the demands of an accelerating global population, the
equivalent of total yearly GDP of Germany.
Correspondingly,
Nigeria is expected to make an average of about $38.2 billion yearly for the
next 23 years to beat the gaps.
Worrisome
however, is the fact that government’s spending, based on current trends
suggests a shortfall of $221 billion, representing about 24 per cent of the
requirement, according to the report.
The report,
Global Infrastructure Outlook, which reveals the cost of providing
infrastructure to support global economic growth has pointed out that $18
trillion, almost 19 per cent, of the $97 trillion, would be unfunded if current
spending trends continue.
The Chief
Executive Officer, GI Hub, Chris Heathcote, said: “Outlook is a comprehensive
and detailed analysis of infrastructure investment need. It gives the new
country and sector spending data that governments and funding organisations
have been calling for.
“It tells us
three key things, how much each country needs to spend on infrastructure to
2040, where that need is for each infrastructure sector, and what their gap is,
based on their current spending trends.’’
Already,
meeting the United Nation’s Sustainable Development Goals (SDGs) for
electricity and clean water provision globally, which is part of the
infrastructure needs, will require $3.5 trillion more than is currently needed
to close the gaps.
To achieve
the SDGs for electricity and water, a further $187 billion will be needed by
2030, bringing the overall investment needs to $ 1.06 trillion.
GI Hub also
noted that the situation is not just a major challenge for emerging countries
that need to create new infrastructure, but also for advanced countries that
have ageing systems.
United
States will have the largest gap in infrastructure spending, at $3.8 trillion,
while China will have the greatest demand, at $28 trillion, representing a
massive 30 per cent of global infrastructure investment needs.
By 2040, the
global population is estimated to increase by almost two billion people, a 25
per cent upsurge, while rural to urban migration continues with the urban
population growing by 46 per cent, triggering massive demand for
infrastructure.
The world’s
greatest infrastructure needs will be in Asia, which will require $52 trillion
by 2040 to meet demand.
The road and
electricity sectors require the greatest spending as the global population
becomes increasingly urbanised.
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