EFFECTS OF INFRASTRUCTURE ON ECONOMIC GROWTH IN NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 GENERAL INFORMATION
In recent years, the Nigerian government has made tremendous efforts not only to ensure equitable distribution of such amenities across the country, but also to grow and improve the quality of such facilities.
Today, the development of infrastructure is the responsibility of both the federal and state governments. However, as Stolper points out, until recently, the majority of infrastructure facilities produced in the country were established, staffed, and controlled by religious organizations, private initiatives, and other voluntary entities such as local communities, individual and municipal governments (1982).
The fourth National Development Plan of Nigeria (1981-1985) was created to address shortcomings and imbalances in infrastructure development, with a planned capital expenditure of around N82.2 billion, 86 percent of which was to be spent on public sectors, particularly infrastructure development. This was the first time the local government participated in their roles as the constitution’s third tier of government.
Regarding education as essential for the development of high-quality manpower, the level of public expenditure on such institutions as primary, secondary, and tertiary institutions in Nigeria, as well as the number of scholarships awarded to Nigerians for education both at home and abroad, has been recognized. Kesside has a literacy rate of roughly 20% in urban areas and 2% in rural areas (2003).
The fundamental goal of the federal and state governments is to eradicate illiteracy; thus, there is a quick increase in elementary, secondary, and university enrollment to a significantly higher level. Despite the fact that enrollment at other educational institutions has followed a similar pattern.
Throughout the country, the government made education, particularly primary school, free. Education is presently compulsory up to the Junior Secondary Level under the Universal Basic Education (UBE).
1.5 STATEMENT OF THE PROBLEM
Despite its immense potential for expansion and development, the status of Nigerian roads has not been sufficient. Poor transportation facilities and infrastructure have repeatedly slowed economic development, weakening the transportation industry. However, only deliberate and realistic planning can provide the solid framework for sustained economic grandeur of Nigerian roads, which will serve as the cornerstone for future generations to build on.
The provision of roads and transportation facilities is critical to Nigeria’s growth and the well-being of its population (Minton, 2000).
Nigerian roads require immediate care, as a poll claims that an average of 50 people die in road accidents every day (Minton 2000).
Out of Nigeria’s nearly 900,000km2 landmass, only 80% of federal highways are partially paved (World Bank report 2004). Technically, it will cost more than N200 billion to build and maintain. The country’s roadways total little less than 200,000km2 of federal, state, and local highways, with just around 50,000km paved.
In his inaugural address in May 1999, President Obasanjo stated, “Transport is the lifeline of the economy and social connections.” Stagnation in all areas is implied by an effective transportation system.” The federal ministry of works is in charge of the Federal Highways’ planning, design, building, and maintenance.
State roads are overseen by the 36 state ministries of works and transportation, while local roads are overseen by the 774 local government works departments (Adeyemo 1999). To put it simply, they have failed. The works and the operations of the works ministry are no longer functional.
To present, the ministry has committed a total of approximately N360 billion between May 1999 and July 2003, yet they have only a very small amount in road maintenance and construction to show for it. The 2002 draft budget allocates only N5.1 billion for maintenance work, compared to N38.6 billion for rehabilitation.
This merely demonstrates the extent of our knowledge in distinguishing between rehabilitation and maintenance. We are solely concerned in road network design and construction, ignoring the standard easy international procedures of planning, design, construction, maintenance, and rehabilitation (PDCMR) of the Federal Ministry of Works (2003).
It is evident that “numbers of accidents on a certain road, political interest and concern, and economic benefits from ideas given by stakeholders serve as pavement condition characteristics used in evaluating pavement rehabilitation of Nigerian roads.”
A feasible senerio is the tasking of approximately 60 small size specialist companies to maintain approximately 400km of federal highways each. This will only require two contractors each state, with a total cost per state of less than N160 million per year.
(Eberts & McMillan 1996) There is an urgent need to preach a break from past wastefulness, incompetence, deception, and bad policy in relation to the country’s road network. However, the country’s infrastructure is in disrepair, necessitating immediate intervention by the government, private initiatives, public-private partnerships, and other means in order for infrastructure to fulfill its role of nation-building and development.
1.6 QUESTIONS FOR RESEARCH
The significance of this study is to demonstrate the function of infrastructure and its consequences on Nigeria’s economic growth. To accomplish these goals, the following research questions are presented and answered:
1. What are the effects of infrastructure development on Nigeria’s total economy?
2. How can a dependable infrastructure development strategy be achieved?
3. How might Nigeria upgrade its existing infrastructure to promote overall economic growth?
4. What are the advantages of adding new infrastructure to the existing ones?
1.7a.THE STUDY’S OBJECTIVES
The main or major goal of this study is to investigate the role of infrastructure and its consequences on Nigeria’s economic growth, as well as to investigate the rate of total economic growth.
1.7b.PARTICULAR OBJECTIVES
i. To ascertain the trend of infrastructure expenditures?
ii. To investigate the relationship between different infrastructure expenditures and economic growth?
iii. Based on the research findings, give useful recommendations.
1.8 HYPOTHESIS OF RESEARCH
Ho: There is no correlation between infrastructure spending and economic growth.
Ha: There is a strong correlation between infrastructure spending and economic growth.
1.9 THE STUDY’S JUSTIFICATION
The ostensibly drastic changes that will arise in overall infrastructure development are predicted to result in a greater rate of economic production, meaning high output and supply of goods and services, leading in a fall in the general price level of goods and services. This, however, has not been the case; inflation has consistently raged against the economy.
Despite the numerous natural incentives for investment within the economy, such as an abundance of natural resources, broad markets, and a tremendous number of entrepreneurial abilities, etc.
This is due to a number of negative conditions, including policy uncertainty, a rigid and burdensome regulatory framework, insufficient incentives, political instability, and a loss in cash flow as a result of …
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EFFECTS OF INFRASTRUCTURE ON ECONOMIC GROWTH IN NIGERIA
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