Infrastructural Financing in Nigeria: Growth Implications

Abstract

This study critically analyzes the effects of infrastructural financing on economic growth in Nigeria between 1970 and 2010. The time frame is selected based on data availability and to cover major structural economic eras in Nigeria since a decade after independence.  The empirical model employed for this study is adopted from the work of Cullison (1993) and later modified. The econometric model incorporates components of government infrastructural spending based on functions. The ordinary least square (OLS) method is used to estimate the empirical model. The result of analysis revealed that that government community service infrastructure spending, private infrastructure investment, broad money supply, and total population, exert positive influence on economic growth. While, government economic service infrastructural spending and total domestic and external debt exerts negative effects on economic growth in Nigeria. On the basis of the significant F-statistic result the null hypothesis “infrastructural investment has significant effect on economic growth in Nigeria”. Policy recommendations are proffered based on the empirical findings.

Keywords: Infrastructure Financing, Public Investment, Public Private Partnership (PPP), Economic Growth, Nigeria