Stakeholders Agree onCriticality of Infrastructure Development as Fundamental Element for Socio-economic Prosperity
Stakeholders and economic experts have unanimously agreed on the criticality of infrastructure development as a fundamental element for socio-economic prosperity. This summation was made at a KENNA Colloquium on infrastructure development held in Enugu with the theme: “Support Mechanisms for Infrastructure Development and Financing.”
The discourse highlighted the need for innovative financial models and collaborative frameworks to address the infrastructure deficits in the region in particular and the nation as a whole. The colloquium focused on how infrastructure initiatives can act as catalysts for broader societal advancement, identifyingspecific areas requiring substantial infrastructure development while offering unique solutions to the challenges.
The Deputy Governor of Enugu State, Ifeanyi Ossai, representing the Governor as Special Guest of Honour, emphasised the government’s commitment to creating an enabling environment for infrastructure investment and economic prosperity by focusing on the fundamentals of socio-economic growth.
According to Ossai, “While taxation is a source of raising funds for infrastructural projects, there is a limit to how much we can tax. Therefore, we are creating an enabling environment to encourage businesses to invest —not just in infrastructure development, but in different sectors—to create wealth for the entire state. It is for this reason that this administration is investing heavily in education and healthcare to reduce the exposure of families to fundamentals that drain their pockets, thereby leading to the growth of businesses and MSMEs.”
Senior Partner at KENNA, Professor Fabian Ajogwu, SAN, gave astute recommendations for supporting infrastructure development and financing. He touched on the strengthening and expansion of the legal and regulatory framework for infrastructure development in the State, stating that a robust framework will provide stability, transparency, and security for investors, boosting their confidence to invest in the State as a corollary.
He commented, “Enugu State should consider establishing a state-level infrastructure fund; a pooled, ring-fenced, and independently managed fund with clear governance structures. The Fund, which could be named the Enugu State Infrastructure Fund, offers a more predictable financing mechanismthan traditional borrowing and federal allocations, while also granting the state more autonomy over how it utilises its funds. The State is also encouraged to expand financing to include Public-Private Partnerships (PPPs), state-issued infrastructure bonds, blended finance structures, and leverage green finance for sustainable projects.”
The Regional Manager of one of Nigeria’s top banks, Chiaka Mbagwu, highlighted some of the limitations faced by financial institutions in bankrolling large infrastructure projects. According to Mbagwu, “Financial institutions can only fund projects sustainably if they are sufficiently capitalised, particularly in light of the long-term nature of infrastructural projects. There is also the need for effective regulations and for professional bodies to conduct feasibility studies on projects while considering the risks associated with them.”
