Years back, a report I read explained how at some point South Korea’s economy grew significantly with infrastructural development.

The sector added about 3% to the country’s total growth rate. In many countries, including advanced ones, infrastructural development is rightfully seen as a driver of economic growth.

Even, in the world’s largest economy-the US-experts have talked about how the revamping of infrastructure will help it in its competition with China. The argument is that America’s infrastructure is overstretched while its competitors build theirs. Politicians in Washington have taken this ‘seriously”.

And so what?

Last Thursday, the president of Nigeria approved the establishment of an Infrastructure Support Fund (ISF).

The fund is targeted at agriculture, education, healthcare, water and energy sectors. Despite, Nigeria being the largest economy in Africa, in terms of infrastructure, the country is woefully lagging.

While the country is generally deficient, the rural-urban gap in the sector is even worse. Many communities in rural Nigeria are still not connected to the national grid.

Also, despite the irrigation potential of the Niger-Benue basin, the country is still behind in terms of food production. It has declared an emergency on food security. Infrastructure is important to robust agriculture.

Furthermore, much of Nigeria’s security problems stem from socioeconomic problems that are exacerbated by the huge infrastructure gap. Schools, hospitals, and portable water among other needs are lacking. Extremists have used the debacle as a propaganda tool.

In recent decades, many Nigerians have sought higher education in Ghana. In one report, it emerged that Ghana makes significant financial gains from Nigerians seeking education in the country. Interestingly, Ghana under President Rawlings had set up an education fund in the 1990s for the provision of infrastructure in the sector.

This fund has been utilized by successive governments in the building of more schools and the expansion of existing ones. Ghanaian schools are among the best in West Africa. Other funds have been established in recent years to build other sectors of the country.

More so, an investment in infrastructure would help create jobs in the Nigerian economy. With an ever-increasing youthful population, that would be a blessing. Again, this could have a positive impact on neighbouring states as good and expansive road networks would enhance trade in the sub-region.

This fund has been utilized by successive governments in the building of more schools and the expansion of existing ones. Ghanaian schools are among the best in West Africa. Other funds have been established in recent years to build other sectors of the country.

More so, an investment in infrastructure would help create jobs in the Nigerian economy. With an ever-increasing youthful population, that would be a blessing. Again, this could have a positive impact on neighbouring states as good and expansive road networks would enhance trade in the sub-region.

Way forward?

While the idea and the establishment of the fund are positive, it is the transparency and efficiency of its management that would make the difference. Corruption must have no place around the fund.

#nigeria

#africa

#infrastructure

#development

#afcfta

Owusu is the CEO of DefSEC Analytics Africa Ltd