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Adequate Infrastructure: A Cure for Poverty in Nigeria

Power

Published: 19th Jul, 2024

Author: Chisom Udora

Duration: 5min Read

Although Nigeria possesses a large deposit of natural resources and a large population, its potential is not fully optimised, and this can be attributed to the state of the country's infrastructure. Consistent efforts across various sectors are needed to promote inclusive growth and development, address poverty, and improve socioeconomic conditions. Infrastructure is the fundamental facilities, organisational, and physical frameworks required for a society or economy to function. These comprise social infrastructure (hospitals, schools), energy supply (gas, electricity), water and sanitation systems, and transportation networks (roads, trains, and airports). Infrastructure facilitates productive economic activity, improves connectivity and access to services, supports urbanisation, and promotes long-term sustainable development, all of which are critical to economic growth and poverty reduction.

State of Infrastructure in Nigeria

Despite being the most populated country in Africa and one of the largest economies, Nigeria still faces a problematic socioeconomic environment. The 2019 global competitiveness report by the World Economic Forum reported a poor performance in Nigeria’s enabling environment, as it ranked 130th out of 141 countries on the viability of infrastructure. This report reviewed the transport infrastructure (sea, road, air, and rail) and utility infrastructure (electricity and water). 

Over the years, Nigeria has fared poorly in terms of its infrastructure, as shown in the graph above. The country witnessed the worst infrastructural situation between 2010 and 2011 and the best between 2013 and 2014.

The state of Nigeria's health infrastructure is still deplorable and worrisome. Primary healthcare systems were reported as weak, as only 19 out of 36 states in Nigeria scored above 56% in terms of nutrition, immunisation, and maternal health. The best-performing state was FCT, at 68%, while the worst-performing state was Zamfara, at 38%.

Infrastructure and Poverty Reduction

  • Access to Basic Services: 

 Modern infrastructure significantly improves accessibility to essential services. Access to markets, healthcare facilities, clean water, and educational opportunities are all made possible by improved infrastructure, and these resources are essential for reducing poverty and promoting human development. Improved roads and transportation systems, for example, can make getting to markets, schools, and medical facilities easier, improving health and education outcomes and stimulating the economy. A consistent, clean water supply and adequate sanitation facilities, particularly in rural areas, can lower health risks and improve the general quality of life. Worthy of emulation is the case of Singapore, which experienced an economic transformation that elevated it from a third-world country to a first-world country due to the country’s public administration development alongside infrastructural development. This development covered the provision of a sustainable water system, the supply of electricity in the country, and one of the most efficient transport systems in the world.

  • Economic Opportunities:

Infrastructure is essential to trade facilitation, market access enhancement, and economic activity promotion because it provides the institutional and physical framework required for effective connectivity, communication, market access, and efficient movement of goods and services. This can support the economy by making logistics efficient and providing tourism and hospitality infrastructure, among many other types of infrastructure. For example, Singapore’s efficient transport system made it very convenient for businesses to set up and operate in the country, resulting in greater employment opportunities, increased income, and improved living standards. Therefore, infrastructure development is paramount for promoting economic growth, enhancing competitiveness, and accomplishing sustainable development objectives at the regional, national, and international levels. 

  • Rural Development:

The fact that agriculturally related infrastructure is anticipated to lower farmers’ costs, accelerate output, and create more job opportunities in the agricultural sector illustrates the relationship between infrastructure development and agricultural productivity. For instance, when road quality improves, agricultural output rises due to increased access and productivity. Infrastructure development in rural areas not only directly improves agricultural productivity by providing access to markets, technology, and water resources, but it also plays a major role in broader economic development and efforts to reduce poverty. Thus, rural infrastructure funding helps communities experience poverty reduction and sustainable development. 

Infrastructure and Social Inclusion

  • Education and healthcare:

Infrastructure, in the form of clinics, hospitals, and schools, is crucial to facilitating access to healthcare and education because it provides basic amenities, guarantees high-quality services, advances equity, and promotes community well-being. Enhancing educational attainment, improving health outcomes, and accomplishing global sustainable development goals related to education and health depend on infrastructure development investments. 

A notable example is the Singaporean healthcare system, which is ranked one of the best globally. The nation has a robust health insurance system that enables the majority of its residents to access discounted healthcare services. Both income-related deductibles and government funds support this system. This development has earned the country a high standard of living and a high life expectancy. The advantages of developing human capital go beyond personal well-being to include more general societal results. Governments, corporations, and all will invest in human capital development through policies, programs, and initiatives to maximise each person's potential and raise the overall human development indices. 

Future Prospects and Recommendations

Inclusive and sustainable infrastructure development is essential to achieving environmental sustainability, social equity, and balanced economic growth. A strategic approach that considers the administrative and financial frameworks required to support infrastructure development and the technical aspects of infrastructure development is necessary to improve infrastructure planning, funding, and implementation. For example, Singapore’s robust infrastructure, which includes an efficient transportation system, a sustainable water system, and a strong healthcare system, among other things, contributed to the economic growth and promotion of social inclusion. This was mainly attainable due to low taxes and tariffs and fewer capital restrictions, which encouraged immigration and the establishment of businesses. This could also include zero to low interest rates on infrastructural investments and practising transparency in their public procurement processes to encourage participation and investment. Governments and stakeholders can improve infrastructure planning, obtain sufficient financing, and guarantee the successful execution of projects that enhance the quality of life. They can also contribute to sustainable economic growth and effectively address societal needs by implementing strategies such as comprehensive needs assessment, stakeholder engagement, and legal and regulatory frameworks. 

References

Abubakar, B. (2022, August 31). The state of states on primary healthcare delivery in Nigeria. Nigeria Health Watch. https://articles.nigeriahealthwatch.com/the-state-of-states-on-primary-healthcare-delivery-in-nigeria/

Global Infrastructure Hub. (2024). Singapore. https://infracompass.gihub.org/ind_country_profile/sgp/

Global Competitiveness Reports. (2010-2019). World Economic Forum. https://www.weforum.org/search/?query=global+competitiveness+report

Schwab, K. (2019). The global competitiveness report. World Economic Forum. https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf

Li, Z. H. (2022). Transport infrastructure and trade. Japan and the World Economy, 64, 101162. https://doi.org/10.1016/j.japwor.2022.101162

Edeme, R. K., & Nkalu, N. C. (2020). Infrastructural development, sustainable agricultural output and employment in ECOWAS countries. Sustainable Futures, 2, 100011. https://doi.org/10.1016/j.sftr.2020.100011

Energy Market Authority. (2024). https://www.ema.gov.sg/about-ema/who-we-are

Federal Ministry of Finance, Budget and National Planning. (2020). National integrated infrastructure master plan. https://nationalplanning.gov.ng/wp-content/uploads/2022/10/REVIEWED-NIIMP.pdf

Lim, H. (2008). Infrastructure development in Singapore. Singapore Institute of International Affairs. https://www.eria.org/uploads/media/Research-Project-Report/RPR_FY2007_2_Chapter_8.pdf

International Citizens Insurance. (2024). Ranking the best healthcare in the world by country. https://www.internationalinsurance.com/health/systems/#:~:text=The%20Best%20Healthcare%20Systems%20in%20the%20World%20in%202024&text=What%20country%20has%20the%20best,comes%20in%20at%20No.%201!

Zarroli, J. (2015, March 25). How Singapore became one of the richest places on earth. NPR. https://www.npr.org/2015/03/29/395811510/how-singapore-became-one-of-the-richest-places-on-earth#:~:text=Weekend%20Edition%20Sunday-,How%20Singapore%20Became%20One%20Of%20The%20Richest%20Places%20On%20Earth,colony%20into%20an%20economic%20powerhouse

Rodrigue, J.P. (2024). The geography of transport systems. New York: Routledge. Retrieved from https://transportgeography.org/contents/chapter3/transportation-and-economic-development/

Singapore Economic Development Board. (2024). https://www.edb.gov.sg/en/why-singapore/future-ready-infrastructure.html

Singapore’s National Water Agency. (2024). https://www.pub.gov.sg/

UNICEF. (2023). Education. https://www.unicef.org/nigeria/education

Wood, D. F. (2023, November 28). Transport economics. In Encyclopaedia Britannica. https://www.britannica.com/money/transportation-economics

World Bank. (2024). Population, Nigeria. https://databank.worldbank.org/source/world-development-indicators

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