Africa (Commonwealth Union) _ Yemisi Edun, the Managing Director of First City Monument Bank (FCMB), has emphasized the urgent need for Nigeria to invest $100 billion annually to address its critical infrastructure deficit. Speaking at the 17th Annual Banking and Finance Conference in Abuja, Edun outlined how underdeveloped infrastructure and lagging manufacturing sectors are hindering the country’s long-term economic growth.
In her address, Edun stressed that addressing the infrastructure gap is vital to Nigeria’s development, calling on the financial sector to take a leading role. She urged Nigerian banks to explore innovative financing methods, including the issuance of long-term infrastructure bonds and forming public-private partnerships. These steps, she believes, will provide much-needed funding for infrastructure projects and boost key economic sectors.
“Infrastructure financing is another pressing issue, with Nigeria needing about $100bn annually to address its infrastructure deficit,” Edun stated, underlining the scale of the challenge facing the nation.
In addition to infrastructure, Edun noted the importance of recapitalizing Nigerian banks to increase their ability to finance essential sectors of the economy. Currently, private sector credit in Nigeria stands at a modest 13% of the nation’s Gross Domestic Product (GDP). She highlighted that boosting this figure is crucial for Nigeria’s broader economic recovery and sustained growth.
Edun’s insights reflect a growing concern among economists and financial experts who see the lack of investment in infrastructure as a bottleneck to Nigeria’s economic progress. Roads, bridges, energy, and telecommunications networks are all areas in dire need of funding. Without substantial improvements, Nigeria risks stalling its industrial and commercial activities, further exacerbating poverty and unemployment levels.
The call to recapitalize banks and explore alternative financing strategies comes at a time when Nigeria is also grappling with dwindling public funds and external debt pressures. Edun believes that with proper financial reforms and increased engagement between the public and private sectors, Nigeria can unlock the potential to tackle its infrastructure woes.
