PwC Report: Infrastructure Spending in Nigeria to Rise by 77% to $40bn by 2050

Dike Onwuamaeze

A PwC report released yesterday, titled “PwC’s Global Infrastructure Outlook,” has projected that spending on infrastructure in Nigeria would rise by 77 per cent to reach $40 billion in 2050.

The report stated this would enable Nigeria to maintain its position as Africa’s largest market and 23rd in ranking globally.

The report said that in Nigeria, power infrastructure is projected to be the fastest growing sector, with annual spending forecast to increase by 187 per cent between 2024 and 2050.

This is a rise from $1.1 billion to $3.2 billion, supported by expanding access to electricity, decarbonisation goals and rising demand.

Speaking on Nigeria’s infrastructure outlook, Partner and Capital Projects and Infrastructure Leader, PwC Nigeria, Ms. Chioma Obaro, said that, “Africa is expected to record the fastest infrastructure investment growth globally through 2050, driven by rapid population growth, urbanisation and the need to close long standing infrastructure gaps.

“Nigeria already leads the continent’s infrastructure market, with annual spending projected to rise by 77 per cent to $40 billion by 2050, maintaining its number one position in Africa and ranking 23rd globally.

“This growth will be shaped by increased investment in transport connectivity, a rapid expansion of power infrastructure, and rising demand for digital and smart infrastructure to support future economic growth.

“To unlock this potential, stronger public private collaboration will be essential to deliver investment ready projects and build a more sustainable future for generations to come.” 

The report stated that “Africa will see the world’s fastest-growing infrastructure investment rate, with annual spending to increase nearly 1.8 times to 2050, reflecting demographic change and significant infrastructure gaps.”

The PwC stated in the report that global infrastructure is entering an unprecedented investment cycle, with annual spending forecast to rise from $4.4 trillion in 2024 to $6.9 trillion in 2050, adding that across the period, cumulative global investment in infrastructure “is forecast to reach $151.1 trillion, as countries modernise transport, power and industrial systems to meet the demands of AI, electrification and urbanisation.”

It said that the Asia-Pacific would account for more than half of global infrastructure investment through 2050, while Africa would record the fastest growth, and Europe and North America will go through a cycle of renewal.

According to the report, “Annual investment in data centre buildings will more than double over three years, reaching $252 billion in 2027.”

In real terms, the forecast suggested that global infrastructure spending over the next 25 years would be double that of the past 20 years, before which comparable data is unavailable.

The PwC’s analysis is the first of its kind to offer long-term infrastructure spending forecasts to 2050 for nine sectors, 20 sub-sectors and 45 countries and territories, which represent 88 per cent of global economic output.

 It draws on the last 20 years of spending data and models future spending based on economic and policy factors.

The outlook highlighted that investment in power, transport and digital infrastructure will converge to create more intelligent networks, where traditional assets operate as part of connected, digitally enabled and electrified systems.

Commenting on the outlook, the Global Infrastructure Leader, PwC Australia, Ms. Clara Cutajar, said: “This is not a traditional construction cycle. This next generation of infrastructure will be intelligent, connected and adaptable—whether that’s roads built for autonomous vehicles and wireless charging or businesses running automated supply networks powered by clean energy and secure compute.

“Systems will need to anticipate demand, allocate resources dynamically and optimise performance—delivering structural productivity gains across every sector.”   

The PwC forecasted major investment in transport and power that would be driven by digitalisation and electrification

It said: “Transport and power will continue to be the biggest areas of investment, accounting for about half of global infrastructure spending to 2050.

“As mobility networks modernise and cities grow, annual transport spending will rise from $1.4 trillion in 2024 to $2.4 trillion in 2050, representing a cumulative total of $50 trillion.

“Annual spending on both rail and airport infrastructure will nearly double from 2024 levels, with annual airport spending 1.9 times higher in 2050 at $154.2 billion, and rail spending 1.8 times higher at US$675.3 billion in 2050.”

It also forecasted that annual spending on power infrastructure will increase from $631 billion in 2024 to $1.1 trillion in 2050, totalling $25 trillion over the period.

“Reflecting the pace of electrification, by 2050, annual investment in power storage will be nearly $91 billion, about 3.7 times 2024 levels, while transmission and distribution spending will grow 2.6 times to $472 billion.”

According to the PwC, defence is seen as the fastest growing sector for infrastructure spending.

It said that annual spending on physical installations, such as barracks, will be 2.3 times higher in 2050 ($168 billion) than 2024 ($73 billion), as governments respond to intensifying geopolitical risks.

The other sectors measured in the report are industrial manufacturing, water and social infrastructure, each of which is expected to grow about 1.5 times to 2050; as well as digital infrastructure and agricultural infrastructure, which are expected to grow about 1.3 times; and resources which will be broadly flat.

The PwC also saw rapid boom in data centre buildings that is currently leading in the sub-sector growth.

It said: “As the world races to unlock the full potential of AI, a surge in spending on data centre buildings is rapidly unfolding and comes in addition to investment in ICT equipment, such as chips and servers.

“Between 2024 and 2027, annual investment in data centre buildings rises 2.2 times, from $113.8 billion to $251.8 billion.

“Total investment from 2024 to 2032 will top $1.5 trillion in a remarkable short-term escalation, which will be followed by a period focused on improving the utilisation, efficiency, and adaptability of existing built stock.”

It forecasted that over the full period, other key sub-sectors would see significant growth.

“For example, aging populations are expected to drive annual spending on health and aged care facilities to rise 1.7 times higher in 2050 ($441 billion)—for the first time coming close to parity with spending on educational facilities (forecast to be $471 billion).

“While the resources sector is broadly flat, there will be targeted growth in mining for metals and minerals critical for the energy transition, such as copper, lithium and rare earths, where annual spending will rise 1.4 times to $128 billion in 2050,” it said.

The outlook forecasted that Asia Pacific would remain the engine of global infrastructure activity, accounting for more than half of total investment through 2050, propelled by urbanisation, industrial expansion and rapid build out of power and digital networks.

It said that Europe and North America are entering a period of renewal as ageing transport, energy and water systems require large scale modernisation to remain resilient and competitive.

“Annual infrastructure spending is forecast to rise 1.6 times by 2050 across the Americas and 1.4 times in Europe. The regional contrasts will shape where capital flows and delivery capability becomes most critical,” it said.

But the PwC noted that mobilising capital alone would not guarantee success.

It pointed out that execution risk, fragmented planning, inconsistent community engagement, supply-chain vulnerability and outdated delivery models could dilute the economic impact of the unprecedented investment volumes.

The outlook highlighted key priorities, including new financing and partnership models, like capital recycling and standardised blended-finance platforms to mobilise long-term private capital and de-risk new technologies so more projects become bankable, especially in emerging markets.

“Cutajar said: “The opportunity is real, but it is not automatic.

“Without faster delivery, integrated planning and new commercial models, the scale of planned investment risks falling short of its economic potential.

“Those who move fastest to integrate planning, finance and delivery will define the next era of infrastructure and capture the returns that come with it.”