Infrastructure-For-Resource Scheme: Solving Nigeria Infrastructure Challenge and Driving Industrial Development

Abstract

Industrial development is intricately linked with infrastructural development, such that without adequate infrastructures, industrial development is forever impeded. There is excruciating shortage of infrastructure in Nigeria, with the current estimates of Nigeria Infrastructure deficit being in the excess of $200 billion (over N30 trillion). This paper discusses the infrastructure-for-Resource deal as a viable option for solving the infrastructure challenge of Nigeria.It analyzes Nigeria’s foray into the model with the oil-for-infrastructure deal of the Obasanjo regime. It identified that the underlying reason for the failure of the scheme to yield the expected result was that the deal did not provide fair value for Nigeria because it was poorly negotiated. It recommends adopting systems of open and publicly accountable bidding for oil, gas and mineral licenses under the Infrastructure-for-Resource deals, thereby creating competition in this class of deals, and significantly reducing the problem of not providing fair value for host country.

Keywords:Infrastructure-for-Resource, oil-for-resource, Infrastructure, infrastructure deficit, industrial development