The African Development Bank (AfDB) and other agencies estimate that ailing or inadequate infrastructure in the power sector knocks as much as two percentage points off GDP growth.
Africa50, an infrastructure investment platform backed by the African Development Bank, AfDB, estimates overall infrastructure funding needs in Africa amount to $1.2 trillion for the period between 2017 and 2025, or $150 billion a year.
It puts the funding gap at between $30 billion and $40 billion a year.
However, the Chief Economist at the PricewaterhouseCoopers International Ltd. (PwC), Mr. Andrew Nevin, has argued that Nigeria alone needs to invest between $30 billion and $40 billion in infrastructure to upscale the national infrastructure.
He argued that the budget for infrastructure, in Lagos which is the commercial hub of West Africa, has never surpassed $2 billion.
Nevin made the remarks during a UK-Africa Pre-Summit Media briefing held at the British Deputy High Commissioner’s Residence, Ikoyi, Lagos, on Monday.
He stressed that the country’s problems are made worse by the rapid growth of its population, which is expected to jump from its current level of 186 million to 400 million by 2050.
The Chief Economist at the PricewaterhouseCoopers International Ltd., therefore called on the Nigerian authorities to speed up processes that will enable more investments to grow the economy at a higher rate, to be able to lift 100 million people out of poverty as estimated by the Federal Government.
Nevin said that Nigeria was only growing at about two per cent and if the country continues that way, there would be more people in poverty.
“To grow economically, we need investment. We need investment, roughly double what is on ground in the country today.
“We need summits like this to connect with people that want to invest in Nigeria, and the UK and Nigeria have such long standing and close ties.’’
The UK Africa investment summit, is scheduled to take place on Jan. 20, in London, UK. There will be representations from 21 African countries at the summit.