Infrastructural gaps and economic diversification in Nigeria

Abstract EN

In recent years, infrastructural developments have become an important vehicle for economic diversification and development, and for many regions and countries both in the developed and less developed societies, financing the gaps in infrastructure for economic diversification has become an integral element of economic development policy.

In particular, Nigeria, being a mono-economic oil revenue-dependent nation and faced with the problems of fluctuating world oil prices, bad leadership and mismanagement of its resources, was recently hit by recession.

To tackle this uncertainty, the government has focused on diversification of the economy from oil to agriculture, tourism, mining and solid mineral development, etc, to finance its expenditure programmes for growth and longer term economic stability.

Economic growth is made possible by improvements in the quantity and quality of factors or resources- land, human and productive capital resources or infrastructure such as roads, railways, water, communication, power, etc.

as this paper argues, the mono-economy structure (our excessive reliance on oil as a major source of revenue), is a big problem confronting the Nigerian state.

However, while government is seeking economic diversification through agriculture to counter instability in global oil prices, a number of challenges to agricultural developments are identified.

These may be overcome collectively through significant investment in rural infrastructure.

Just as some ground speed is required for the aircraft to airborne, certain critical amount of infrastructure must be put in place for economic diversification to be made possible.

The paper argues overall that it is through requisite investment in infrastructure and the diversification of the economy that the economy can grow and develop.