EFFECTS OF INFRASTRUCTURE ON ECONOMIC GROWTH IN NIGERIA
1.1 BACKGROUND INFORMATION
government has made significant efforts in recent years, not only in the fair
distribution of such facilities to different parts of the country but also to
increase the quality and improve the quality of such facilities.
development of infrastructural facilities today is the responsibility of the
Federal and state government. However, it should be noted, that until recently
most of the infrastructure facilities developed in the country were
established, staffed and controlled by religious organization, private initative
and other voluntary agencies such as local communities, individual and local
councils as pointed out by Stolper (1982).
fourth National Development plan of Nigeria (1981-1985) was made to
address the inadequacies and imbalance in infrastructural development and it
had a projected capital expenditure of about N82.2 billion, 86% of this was to
be spend on public sectors especially in the development of various infrastructures.
This was the first time the local government participated in their capacities
as the third tier of the government created by the constitution.
education as essential for the development of high quality manpower as been
recognized in the level of public expenditure on such institution like primary,
secondary and tertiary institutions in Nigeria and in the number of
scholarships to Nigerians on education both at home and abroad. The literacy
rate is about 20 percent in urban areas and 2 percent in the rural areas
is the primary objective of the Federal and State government to reduce the rate
of illiteracy; hence there is a rapid increase in Primary, Secondary and
University enrolment to a substantially increased level. Though the enrolment
in other educational institutions has shown a similar trend. The government
made education free especially primary education throughout the country. The
Universal Basic Education (UBE) has now made education compulsory up to Junior Secondary
1.2 THE UBE PROGRAM
renovation that is realistic and child centered, that is quick in rejuvenating
and revitalizing hope and passion for acquisition of broad based knowledge that
is worthwhile in a learner should be the focus of the structure. Methodology
that will aid self discovery and problem-solving ability which allow learners
the opportunity for creativity should be entrenched in the curriculum. Quality
and relevance are the two features that curriculum development in Nigeria now
needs. Equally, changes and innovations of a school system of our globalized
environment must involve the emergence of elastic curricula models and
educational policies which emphasize interdisciplinary courses, open-ended
systems, intergenerational and inter-professional relationships,
multi-culturalism and sustainability. The need for a paradigm shift from
theoretical and paper certification to a practical application of knowledge
necessary for future employment and skills development for self-employment
should be the cardinal objectives of Nigerian education. Curriculum developers
should also adopt the interdisciplinary approach to curriculum especially at
the primary and junior secondary school levels. Emphasis should be on the
changing needs of the society through enhance on the understanding and
application of new technologies. Finally, to teach a new curriculum at all
levels of education, the teachers and instructors currently employed by the
Government have to receive further training.
to Ukpong (1979), inspite of the growth rate in electricity production and
consumption in Nigeria,
the per capital consumption of electricity is among the lowest in Africa. In term of per capital consumption 107HWHK for
developing countries per capital consumption of less than 40KWH etc.
role of infrastructure and its effects as an agent of growth and development is
not a new phenomenon’s is a very important parameter for economic growth that
no one can deny. Development of infrastructure implies a complete modernization
of the economy as a while which leads to substantially increased output and
productivity. It entails conversion from peasant farming society to an
industrial nation; it is a way of change in the living standard, life
expectancy, reduction in infant mortality. It is perhaps for these reasons that
there is no unanimity as to the criteria for measures development of
1.3 LINKAGE BETWEEN INFRASTRUCTURES IN NIGERIA
millennium development Goals (MDGS) are a series of time-bound development
targets aimed at addressing the challenge of under-development. The MDGS
address issues on infrastructural facilities and global partnerships for
development, agreed by the international community to be achieved by year 2015.
This is perhaps the most significant step in the war against poverty.
of the Millennium Development Goals (MDGS) is largely dependent on the
availability of functional infrastructure. Decentralization is an opportunity
that can be used to realize the MDGS especially at the lower levels of the
society and Government. Decentralization, which is about central government
increasingly devolving certain jurisdictional functions to local authorities,
has diverse impact. A major impact area that can have direct benefit to
communities in the provision of infrastructure. This is because economic growth
is linked to poverty reduction and improved access to infrastructural services
induces economic growth in a cyclical manner. Therefore, carefully thought out
mechanism that ensures functional nexus of infrastructural services and
economic activities are rudimentary ingredients for liveable human settlements.
suitability and sustainability of human settlement for economic development is
strongly linked to the level of serviceability and liveability. Serviceability
connotes the quality of being able to provide good services and the extent to
which these services are adequately available in an area. Liveability, refers
to overcoming poverty, providing basic public services, maintaining minimum
level of environmental standards, adequate housing, security and safe
environment, access to amenity and learning institutions. The issue of
settlement service ability and liveability is infrastructure-based, where water
services function, as a basic amenity.
is the worlds most important resource and a necessity of life. Adequate access
to social welfare services, such as medical services, education, portable water
supply, roads, electricity e.t.c. are strong indices of development (Adeyemo,
1989). Portable water supply is both a function of adequate and accessible
functional water infrastructure.
infrastructure stands out of all infrastructures (Physical and social) as
critical to the attainment of the MDGS. This is because beside goal number 7
and target 10 which are specifically water based, issues addressed by goal 1-7
in general directly or indirectly relate to water availability. Meeting the
water needs of African countries would be many steps closer to attaining the
overall MDGS (AWDR 2006).
United Nation’s estimates 1.1 billion people lacking access to safe drinking
water, is compounded by the record of 2.4 billion people without access to
adequate sanction (Cunningham, 2004). African countries have embraced the
decentralization as a mark of good governance, given that it is an antidote to
poverty perpetuation. Nigeria
are the most populous countries in Africa and
operates decentralized systems.
2004 for example, safe water coverage in Nigeria was only 48 percent (FGN,
2004). Ironically, water is very important for socio-economic development, this
is in addition to portable drinking water supply being a basic human need and
sufficient water for good hygiene is a prerequisite for public health (World
Bank, 1994) when access to water is disrupted, people therefore face acute
human security risks transmitted through poor health and the disruption of
livelihood (UNDP, 2006).
view of the foregoing, it is obvious that water front is where the war of
poverty and by implication attainment of the MDGS would be won or lost. The
contention is that infrastructure, especially water infrastructure is critical
if MDGS are to be attained.
1.4 INFRASTRUCTURE DEVELOPMENT AND ECONOMIC
role of infrastructure as an agent of development is not a new phenomenon. A
wide range of evidence on the importance of infrastructure on an economy,
drawing the conclusion that infrastructure contributes to economic growth both
through supply and demand channels by reducing cost of production, contributing
to the diversification of the economy and providing access to the application
of the modern technology, raising the economic return to labour (by reducing
worker time in non-productive activities and improving health with skill).
infrastructure raises the quality of life by creating amenities, providing
consumption goods (Transport and Communication services) and contributing to
Micro economic stability (Kesside 1993).
Bank Report (2003), examined that ICT has definitely influenced, “Capital
deepening”, (Increased the intensity of Physical capital per unit labour) and
shown additional gains in assisting more efficient work organization outside of
ICT sector, where productivity gain have been significant both inside and
outside of ICT sector, it is proposed that this is the result of policy and
institution setting conducive to innovation and adoption of new technologies.
The report further stated that “Sound infrastructural development policy
setting is a key ingredient for sustainable long term growth”. Investment in
human, physical and knowledge capital is identified as the key driver of
economic growth and macro economic policies (including price stability, inflation
control, tax structure system, facilitating of international trade growth,
pro-competitive regulation facilitating the entry of innovation firm,
facilitating the skill and education of the existing and potential work force,
encouraging R and D (Research and Development) removing barrier to network
access) are found to facilitate investment.
observed by the United Nation, the provision of adequate amount of electric
power is important in the establishment and maintenance of a modern economy and
ensuring its growth.
(1979) stated that the disparities in the level of development between the
different states and geographical regions of Nigeria are attributed in part to
the uneven distribution of such facilities as education, health, transport, power
and Communication, he stated further that Nigeria has made significant efforts
in recent years, not only in the fair distribution of such facilities to the
different parts of the country but also increase the quality and improve the
quality of such facilities.