PAPER ON INFRASTRUCTURE DEVELOPMENT AND ECONOMIC ...

THE NIGERIAN INSTITUTION OF ESTATE SURVEYORS AND VALUERSPAPER ONINFRASTRUCTURE DEVELOPMENT AND ECONOMIC EMPOWERMENTIN NIGERIABY:DR. B. J PATUNOLA- AJAYI BSC, ThD, FNIVS, RSV2 ND VICE PRESIDENTJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 1

ABSTRACTThere is a correlation between the extent of infrastructural development of anation and her economic growths. Lack of basic infrastructural developmentprogramme affects virtually all sectors of the economy and impedes feasibleeconomic empowerment. Infrastructure is the underpinning on which strongnational development is built. Therefore, any nation that desires to accomplishany significant economic development must invest more on provision andmaintenance of basic infrastructural facilities.This paper provides an informed perspective into the role infrastructuraldevelopment plays in the attainment of economic growth of a countryparticularly Nigeria. Also, factors responsible for the current state ofinfrastructural development in the country were examined. The paper equallyprovides an in-depth outlook into various empowerment programme; theachievements and shortcomings. Also, the paper recommends modalities toachieving an unwavering economic empowerment in the country throughdevelopment and provisioning of appropriate and adequate infrastructure.Finally, it is expected that this paper is going to serve as a catalyst that willarouse the interest of the Governments at all levels, and the people of thecountry in infrastructural development.Keyword:Infrastructure, Development, Empowerment, Maintenance, Facility, Growth.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 2

INTRODUCTIONInfrastructure is defined here to include the sectors of transport, waterand sanitation, power, telecommunication, etc. It represents a largeportfolio of expenditure in all countries, ranging from a third to onehalfof the public investment (equivalent is roughly 3-6 percent ofGDP). Since the mid 1980’s, there has been evidence of increasingconcern and debate about the performance of infrastructureamongeconomic policy makers, politicians and the public in bothdeveloped and developing countries- and a resurgence of researchon the impact of infrastructure on economic development.Infrastructure contributes to economic growth (acting through bothdemand and supply). In an aggressive sense, the character and theavailability of infrastructure influence the marginal productivity ofprivate capital; public investment complements private investment.At the microeconomic level, this effect of infrastructure is seenspecifically through.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 3

INTRODUCTION CONTD.Reduced Cost of Production- infrastructure hence affects profitabilitylevels of output, income and employment, particularly for smallmedium scale enterprises. It also has impact on the cost and servicequality in international trade (trade logistics), which determinescompetitiveness in export/import markets (kessids 1993). This is a majorreason why goods produced in Nigeria are very expensive whichwaters down the ability of the country to compete in the internationalmarket.Infrastructure provision in Nigeria is at crossroads in spite of its beingcritical to the economic productivity. When infrastructure is lackingboth quantitatively and qualitatively in any area, resort will be madeto self help. According to survey report on infrastructure andhousehold by the Lagos State Central Office of Statistics 2006, 90% ofhouseholds in Lagos rely on street vendors and private neighborhoodfor water supply and only about 39% treat their water for safe drinking.The survey also indicated that 83% of household experienceunexpected interruption in electricity power supply daily, andbetween 47% - 67% experience damage to their householdappliances due to fluctuating voltage. According to Otegbulu(2012), majority of household rely on vended and well water for theirdaily use. This source of water is not so hygienic and hence is unfit forconsumption. In addition, poor road conditions constraint movementof goods from one point to the other, while poor drainage systems hasworsened the problem of flooding in most parts of the country.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 4

INTRODUCTION CONTD.Basically, in the whole African continent, infrastructure related problems account for anaverage 2 per cent decline in economic growth per annum. All the 48 countries in Sub-Saharan Africa with over 800 million people produce approximately the same power asSpain with only 45 million people. Bridging Africa’s infrastructure gap as a means ofovercoming the continent’s several developmental challenges cannot be overstated.Better roads and rail systems can enable increased intra-continental trade andinvestment; increased power generation enhances the productivity of businesses andmanufacturing; better communication services can facilitate financial transactions;access to clean water and sanitation improves the general health of the population, thusenabling more people to work and contribute productively to the economy. (SanusiLamido Sanusi, Governor, Central Bank of Nigeria. 2012)Infrastructure can be described as facilities and services which enhance the physical,social and economic development of a nation and her people. According to Adeyinkaet al (2011) “infrastructure can assume several meanings, and it covers transport, building,power, health, tourism, communication facilities, land and country planning,demographic structure control, etc”. The manner in which provision of this basicinfrastructure are dispensed to meet the demand of public in general will determine thelevel of economic activities and in turn, the overall development of a nation. Adeyinka etal (2011) described infrastructure as the “wheel of economic activity”. Infrastructure helpsto determine the success of manufacturing and agricultural activities. Investments inwater, sanitation, energy, housing, and transport also improve lives and help reducepoverty. And new information and communication technologies promote growth,improve delivery of health and other services, expand the reach of education, andsupport social and cultural advances. (World Bank)J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 5

Basic economic development analysesBasic Requirements Infrastructure MacroeconomicEnvironmentHealth&EducationPrimaryS/N COUNTRY/ECONOMY RANK RANK RANK RANK1 Switzerland 2 5 8 82 Singapore 1 2 17 33 Finland 4 23 24 14 Spain 10 7 13 145 Hong Kong 3 1 15 266 UAE 5 8 7 377 Ghana 112 110 108 1128 United Kingdom 24 6 110 179 France 23 4 68 2110 Korea Rep. 18 9 10 1111 South Africa 84 63 69 13212 Egypt 110 83 138 9413 Cote d’lvoire 137 102 130 14014 Mali 125 107 74 14115 Nigeria 130 130 39 142Source: The Global Competitive Report, 2012-2013J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 6

NIGERIA AND INFRASTRUCTURE DEVELOPMENTThe sight of sophisticated infrastructure and their level of functionality in othercountries of the world including some African countries make averageNigerian national feel despondency about home economic development.Infrastructure as a whole could be grouped into sections in relation to theiroverall contributions to the ultimate success of economic development andempowerment.The various sections include:‣ Land Administration Infrastructure.‣ Transport Infrastructure: Roads, Rails, Water-ways, Air transport, etc.‣ Service Infrastructure: Electricity Power supply, Portable water supply,Communication and Information, etc‣ Social Services Infrastructure: Healthcare, Education, Cottage Industry, Tourism,Sport facilities, etc.‣ Building and Environment: Residential, Commercial, Industrial, Agricultural withanxiliary structure, etc.‣ Infrastructural Nerve Support: Demographic information, Social SecuritySystem, Judiciary System, Government-Legislative and executive, Societyorientation.‣ Mining Infrastructure: Petroleum, Solid Minerals, Natural Gas, etc.‣ Research and Development Infrastructure: Research into design, Productionand other Technological DevelopmentJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 7

REVIEW OF INFRASTRUCTRE DEVELOPMENT IN NIGERIA.Infrastructure is a key component of the investment climate, reducingthe cost of doing business and enabling people to access markets.Good infrastructure is critical to advance in Agriculture, it is a keyenabler of trade and integration, important for offsetting the impactof geographical dislocation and sovereign fragmentation and criticalto enabling Nigeria to break into world market; and is fundamental tohuman development, including the delivery of health and educationservices to poor people. Infrastructure investment also represents animportant untapped potential for the creation of productiveemployment. In spite of this obvious importance of infrastructure tothe nation, governments both at federal and state level havecontinued to pay lip service to infrastructure provision. This hasundermined growth prospect in the country. We shall now takeglances at the condition of some of the country’s major infrastructure.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 8

Condition of Roads in NigeriaThe rate of neglect on road infrastructure in Nigeria is pathetic. Allroads that connect our major cities are bad and deteriorating ondaily basis. The sea port and commercial centre to inter-land arein bad conditions due to neglect; those still existing are in terribleshape of disrepair and when effort are made to repair it is usuallyrepaired with substandard materials which after 3 month return totheir appalling shape without anybody raising an eye brow. All themajor roads linking Lagos, the commercial capital of Nigeriaincluding:• Lagos-Ibadan Express,• Lagos-Ore – Benin Express,• Lagos Badagry/ Seme Express way,• Lagos Abeokuta Road, and• Lagos-Ikorodu - Shagamu Road.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 9

Images of some of the bad roads in NigeriaJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 10

Condition of Rail Transport in NigeriaThe rail transport in the country constitute an eyesore: the existing rail in Nigeria till dateare the ones put in place by the British colonial masters before the nation’s independence50 years ago. Most of the train coaches are completely old and are rarely used in thismodern day. It is pathetic to note that many times maintenance works are carried out onthe rails with no attempts made to create more routes or procure new coaches. It hasbeen planned several times with huge financial commitment yet the nation is waiting tosee it implemented.The neglect of the Nigerian Railways is an instance of a transportation policy which hassidelined an important and cheap means of transport to foster the growth of privatelyownedlong haulage transport services. This policy has engendered the following:(i) It has made the Nigerian Railway Corporation [NRC] a lame duck with total reliance onthe Government for subvention.(ii) A disorganized, unregulated private sector-owned road transport system providingfreight and passenger services. The effects of these are:Traffic congestion on urban roads.Increasing rate of fatal road accidents emanating from bad roads, poorly-maintainedvehicles and careless driving.Worsening environmental pollution. The sharp devaluation of the Naira has alsoaggravated the situation as an increasing number of private car owners are joining thepool of frustrated travelers and commuters. (Nigeria Bureau of Statistics).J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 11

Water Ways Infrastructure in NigeriaNigeria is a country that is naturally endowed with many water waystransportation potentials, but these have hitherto being neglected.There is a long stretch of coast along the ocean from Badagry inLagos state to Calabar in Cross- River State. The Regions Rivers andwaterways in all parts of the country are left undeveloped. The waterways is almost completely neglected with only very few canoe andferrying routes which have not really been equipped with good jetty,harbor, safe boats and ferries with good publicity to reducecongestions on the road and aid easy movement of citizen. Taking foran instance, the mini port at Ikorodu Lagos State which was recentlyrefurbished it has served as a relief for quite a number of commutersand car owners who now save the hours of going through hecticIkorodu –Lagos-Lekki traffic by crossing with a ferry to Ajah. This shouldbe replicated in all the coastal area and a permanent programmeof development and maintenance of waterways system should beput in place.There are portions of the rivers that are also left undeveloped forwaterways transport. Heavy cargoes could be moved on our waterwaysto reduce the pressure on the roads.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 12

Air Transport Infrastructure in NigeriaAir transportation can stimulate national economic development. Travelling byair is still expensive in Nigeria by international standard. Our airports haveremained in deplorable condition until the recent attempt towards improvingthem. In addition, air transport using helicopter, chattered planes, cargoplanes and passenger planes has remained un-tapped in Nigeria except bythe few elites. Many passengers are frustrated at the airports by delay of flightsor total cancellations. Not until recent effort of the federal government torenovate the already deteriorated terminals, virtually all facilities in theseterminals are obsolete. There are not enough airports in Nigeria becausealmost all state capitals are really ripe for having airports. Though the traffic willthen depend on the number of the passages that use the various airports. Theaircrafts should be good enough and comparable with any standard fleet inthe world.Air transport has an exceptional advantage over all other forms of transport ifspeed, time and distance are major considerations. Air transport is of highvalue in relation to weight. It is also preferred where accessibility by othermodes is a problem (especially in riverine or mountainous regions). Airtransportation is a system with many inter-related parts. Each airport isconnected to the system through the airways and other airports with which itexchanges flights. Its share of the GDP is however, still negligible in Nigeria.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 13

Electricity Power Supply In NigeriaSub-Saharan Africa, including Nigeria is in the midst of power crises. The region’s powergeneration is lower than that of any other world region and capacity growth hasstagnated, compared with other developing regions. An estimated 93 percent of Africa’seconomically viable hydropower potential or 937 terawatt hours (TWH) per year, aboutone-tenth of the world’s total – remains unexploited. Much of that is located in theDemocratic Republic of Congo, Ethiopia, Cameroon, Angola, Madagascar, Gabon,Mozambique and Nigeria (in descending order by capacity).Power supply is one of the greatest avenues for economic empowerment of the peoplewhen it is available on a regular basis. All the small and medium scale industries operateeffectively when there is regular supply of power. The pepper grinder, the vulcanizers, thepure water factory, the tailoring machines, the poultry feed mill, the bakery to mention butfew to certain extent rely on power supply to operate optimally and this is the major waycitizen can be empowered.Furthermore, the major factories can only thrive profitably when public supply of power isregular, recently, many companies have folded up because of epileptic power supplybeing experienced across the country and some are forced to relocate to othercountries thereby increasing the rate of unemployment and lay-off. It is like the successivegovernments of Nigeria deliberately refused to find a lasting solution to the poor powersupply in the country in order to encourage importation of generators which undoubtedlymost Nigerians relied on as an alternative for power. The supply of power from the publicmains is so important that Government should put it on priority list. Despite series of effortsand resources put in place to restructure power sector Nigerians are yet to ease a sigh ofrelief.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 14

Water Supply InfrastructureIt was said that only 50% of the population in Nigeria have access tosafe water (Report). The situation is deteriorating because the littlesupply in some towns and cities has reduced considerably due todamaged supply pipes, water treatment station problems. Many ofthe water works do not have power supply many times and have torely on generator to power the treatment plants. When the generatormaintenance has an itch, the water supply is affected.The majority have not seen any plan directed to their areas. Goodwater will ensure good health of the people. At present the mainsources of water are wells, boreholes, spring, brooks, flowing riverswhich are not safe enough for human consumption.Consequently, the spread of contagious diseases in some part of thecountry constitute an eyesore for the acclaimed giant of AfricaJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 15

CommunicationUntil early 1990’s there were no cellular phones in Nigeria. However, ten years after,different telecommunication companies were operating communication services inNigeria. This revolutionized the private and public business environment. It is pertinent tolook at the present situation in comparison with other countries. There were notelecommunication infrastructure to enhance access to mobile telephones and otherinternet links which is now a common place. While communication gap is bridged, thepresent operation has removed unproductive trips, because businessmen could fix andkeep appointments with accuracy. Millions of Nigerians are now transacting business onphones, and this has led to improvement in economic development. Telecom serviceproviders in Nigeria include MTN Nigeria Ltd, Airtel, Globacom,Etisalat, Multilink to mentiona few.It is observed that from inception all the telecom service providers came with high prices,and continue to take undue advantage over Nigerians. The charges per airtime stillremain high. It is also unfortunate that all the telecom service providers could not ensuresmooth and clear reception. The networks are always interrupted while they continue tocharges on failed-calls. This is contrary to other countries of the world where you only payfor successful calls made.The telecommunication infrastructures remain inadequate in terms of capacity andcoverage. Services are always fluctuating in many areas and callers are charged for callsthat are not audible. The recent years experience has shown that better communicationservices would facilitate better business and increased financial transactions.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 16

Nations General Infrastructure Index Report.OVERALLINFRSTRUCTUREROAD RAILROAD PORT AIR TRANSPORT ELECTRICITYSUPPLYMOBILETELEPHONECOUNTRY RANK RANK RANK RANK RANK RANK RANKUnitedKingdom24 24 16 12 22 8 28UAE 6 2 - 5 3 20 15Turkey 34 43 53 63 36 77 98China 27 21 11 29 44 28 40Switzerland 1 6 1 37 5 4 29South Africa 58 42 46 52 15 94 35Singapore 2 3 5 2 1 6 14Ghana 86 85 104 76 97 116 103Egypt 88 109 52 79 54 82 84Nigeria 130 114 95 106 100 138 124Source: The Global Competitive Report, 2012-2013J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 17

SIGNIFICANCE OF INFRASTRUCTURE TO ECONOMIC GROWTH AND DEVELOPMENTThe objectives of development are:• To increase the availability and widen the distribution of basic lifesustaining goods such as food, shelter, health and protection.• To raise levels of living, in addition to high incomes, the provision of morejobs, better education and greater attention to cultural and humanvalues, all which will serve not only to enhance material well being butalso to generate greater individual and national self esteem.• To expand the range of individual and social choices available toindividuals and nations by freeing them from servitude and dependencenot only in relation to other people and nation states but also to the forcesof ignorance and human misery (Todaro & Smith, 2006).• To create wealth for the NationJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 18

SIGNIFICANCE OF INFRASTRUCTURE TO ECONOMIC GROWTH AND DEVELOPMENTCONTD.The US department of the Treasury with the Council of EconomicAdvisers in a research conducted last year revealed that a welldesigned infrastructure investments can raise economic growth,productivity, and land values, while also providing significant positivespillover to areas such as economic development, energyefficiency, public health. Poorly planned, non strategic,infrastructure investment is not only a waste of resources, but cannegatively impact future economic growth. With limited fundingavailable, it is important to select investment that will provide thegreatest return, be it economic or social. Investing in infrastructure isone of the significant mechanisms to increase:• National income• Increase employment rate• Improve productivity• Economy competitivenessJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 19

EFFECT OF POOR INFRASTRUCTURE DEVELOPMENT ON THE ECONOMYThe following are the major setbacks attributed to poor InfrastructureDevelopment in Nigeria. This can be viewed from two major perspectives.Citizen perspective:‣ Unemployment‣ Poverty‣ Low -Level of Education‣ Ethnic differences‣ Conflict of InterestGovernment Perspective:‣ Poor Town Planning‣ Corruption‣ Selfish Interest‣ Lack of good maintenance culture‣ Government instability‣ Negligence of duty by government officialsJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 20

INVESTMENT REQUIRED IN ACHIEVING NIGERIA VISION20:2020 TARGETS IN KEY SECTORSPOWER:Generating40,000mw by2020RAILWAY: Develop adeep sea Port andimprove service in theExisting onePORTS: Develop adeep sea Port andimprove in the ExistingoneROAD: Costal roads,bridges and other keyhighways$35,Billionrequired$13 Billionrequired$5Billionrequired$3.5 BillionrequiredChallenges/OpportunityRequiredinvestment isbeyond PublicSector ResourcesUrgent need toattract diversesources of capitalHugeopportunityInvestorsSource: Infrastructure Concession Regulatory Commission of Nigeria (Engr. Mansur Ahmed FNSE)J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 21

ATTAINING GOOD INFRASTRUCTURE DEVELOPMENT AND ECONOMIC EMPOWERMENT:Infrastructure Reform• Formulation of Infrastructureand Utility sector Policy.• Sustainable private sectorinvestment.• Private sector participation(PSP).• Infrastructure sectorrestructuring and market reform.• GIS and InfrastructureDevelopment• Removal of dispute on Landownership.• Titling of every plot of land gives thelocal farmers, poor and rich thepotential opportunity to accessfunds using their titles land ascollateral security. This will bring arevolution in securing financialresources for small, medium andlarge scale industrial and economicventures• Government Investment inInfrastructure.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 22

ATTAINING GOOD INFRASTRUCTURE DEVELOPMENT AND ECONOMIC EMPOWERMENTCONTD.Source: System of Land and Property DataBuilding &DwellingregisterThe Municipalregister ofProperty&TitlingTheCadastralRegisterCentralPopulationRegister&TitlingThe Registerof PlansThe Cross Reference SystemHandling of Information:CalculationIntegrated Management SystemPresentationDigitalCadastralMapDigitalTechnicalMapDigitalTopographicalMapControl Point RegisterJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 23

ATTAINING GOOD INFRASTRUCTURE DEVELOPMENT AND ECONOMICEMPOWERMENT CONTD:• Lagos Megacity AttemptThe Lagos megacity transportationsystem is an attempt to open up thetransport routes to the neighboringstatesofOgun, Oyo, Osun, Ondo, Kwara, Kogi, Edo,Ekiti and Delta The projecthas remained an earnestexpectation for long. I havepersonally observed as aprofessional in the constructionindustries that such a projectrequires the combined effort of theFederal Government and the statesto make it a model in Africa. whensuch transport system is well utilize, itwill contribute substantially to theGDP of the country.Similar project is being planned forother zone.PICTUE OF PROPOSED LMCJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 24

Zonal CentresZonal CentresZonal CentresFederalGovernmentFCTZonal CentresZonal CentresZonal CentresSource: National Planning CommissionJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 25

ATTAINING GOOD INFRASTRUCTURE DEVELOPMENT AND ECONOMIC EMPOWERMENTCONTD.• Urban, Physical PlanningThere must be implementation of urban and physical planning regulations inevery part of the country. Physical structure must be recognized and put intoeffective operations. All public and private development should be within anapproved layout. No matter how far into the inter-land the Government shouldencourage and enforce the regulation put in place. It will not be out of placeif the plan approving authority will further encourage the people withprototype design of houses freely for the layout. This will usher orderlydevelopment and the areas mapped out for infrastructure must not beencroach upon. There must be development orderliness and professionalsmust stick to their ethics both in the public and private sector.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 26

ATTAINING GOOD INFRASTRUCTURE DEVELOPMENT AND ECONOMIC EMPOWERMENTCONTD.• Roles of Public Private Partnership(PPP) in Infrastructure Development• Lekki Epe Road/ mma2• Speedy, efficient and cost effective deliveryof projects.• Value for money for the taxpayer throughoptimal risk transfer and risk management.• Efficiencies from integrating design andconstruction of public infrastructure withfinancing, operation and maintenance /upgrading.• Creation of added value through synergiesbetween public authorities and privatesector companies, in particular, through theintegration and cross transfer of public andprivate sector skills, knowledge andexpertise.• Alleviation of capacity constraints andbottlenecks in the economy through higherproductivity of labour and capital resourcesin the delivery of projects.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 27

ATTAINING GOOD INFRASTRUCTURE DEVELOPMENT AND ECONOMIC EMPOWERMENTCONTD.NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY (NEEDS)Achievements of NEEDSThe achievements of the reforms have centered on macroeconomic stabilization of the Nigerianeconomy by improving budgetary planning and execution, and provided a platform for sustainedeconomic diversification and non-oil growth (Okonjo-Iweala and Osafo-Kwaako, 2007). The reformedfiscal policy had enabled accumulation of government savings for back-up purposes. Governmentbudgeting was based on conservative oil prices of $25 per barrel in 2004, $30 per barrel in 2005 and $35per barrel in 2006, despite higher realized prices of $38.3 and $54.2 in 2004 and 2005 respectively, and anestimated average price of $68 for 2006 (Ikonjo-Iweala and Osafo-Kwaako, 2007). This development hadhelped in declining government expenditure from oil revenue earnings. Gross excess crude savingtotaled about $6.35b at the end of 2004 and about $17.68b by the end of 2005 (CBN, 2006).Additionally,the external reserves had grown by an annual average rate of about 23% from US$7.68 billion in 2004 toUS$43 billion at the end of 2006, as against 12.2 percent target (IMF, 2007).Statistics provided by the IMF (2007) indicated Nigeria had experienced growth in virtually all its sectors ofthe economy during the first phase of NEEDS‟s implementation. Real GDP annual growth rate averaged6.6 percent (2004-2006) as against the annual target of 6.0 percent; phenomenal growth in the net inflowof foreign direct investment (FDI) and portfolio investment particularly in the banking andtelecommunications sectors was achieved. The FDI rose fromUS$1.866b in 2004 to US$2.3b and US$4.8b in2005 and 2006 respectively. However, the oil sector annual growth rate averaged 0.23 percent asagainst 0.0 percent targeted in the period 2004–2006 while the non-oil sector average annual growthrate was 8.2 percent as against the NEEDS target of 8.0percent between 2004 and 2006.The domestic and foreign debt profile had constituted another constraint on Nigeria’s macroeconomicstability. Under the reform programme, Nigeria was able to pay its debts arrears owed to someInternational Finance Institutions (IFIs) particularly the Paris and London Clubs via:Direct repayment where $6.4b was paid.Debt buys back arrangement where $8b was settled at 25% discount.Debts write-off where $16b was written-off by the creditors.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 28

ACHIEVING VIABLE INFRASTRUCTURE DEVELOPMENT IN NIGERIAThe country, as enumerated above is undoubtedly facing acuteshortage of infrastructure Development and effort must be gearedtowards devising various strategies to achieve a fascinatingInfrastructure Development across the country. It is a fact thatInfrastructure Development always brings about EconomicEmpowerment. Any effort towards Infrastructure Developmenttherefore will attract Economic Empowerment of the people and thenation.Presently, what obtains is an isolation development, mostly engineeredby political motives and extreme pressure from the people. TheInfrastructure Development in the country is being hindered by poorhandling and negative attitude of appointed supervisors to monitor theprojects. There are various ongoing projects in all the six geo-politicalzones of Nigeria and those consider not too important to embark on.(see Appendix)J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 29

The Master Plan• In attaining an impeccable Infrastructure Development any developed nationof the world requires a viable master plan and re-orientation. The followinghighlights can be considered as some of the guiding principles in an effort todraw up our comprehensive Infrastructure Development Master Plan.• Determination to Develop Infrastructure and attain Economic Empowerment.• Committed selfless Leadership in Governance• Application of Demographic Information• Land reforms• Comprehensive Town, Urban, Zonal Planning• Revolutionary Programme in Education• Singapore Approach – Training abroad• Setting Priorities in Infrastructure Development: Education, Healthcare,• Cottage Industry, Tourism and Sport Facilities• Mining Infrastructure – Wealth of the Nation• Re-orientate the Security System, and Discipline in the NationJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 30

CONCLUSIONThe abundant resources in Nigeria can be harnessed to provideadequate infrastructure for the country and indeed entire Africa.However, the Nigerian credentials and qualifications for infrastructuraldevelopment have been misapplied. Pleasant stories like Nigeria dailytwo Million barrels of crude oil remain mere lip service for sufferingpeople of Nigeria. This paper gives an indication that infrastructuraldevelopment in Nigeria requires a combination of strategies such asradical shift in political behavior, good governance and publicprotection from exploitation by private companies. Learning from thepace of change set by leadership of other African countries can beemulated in rebuilding Nigeria infrastructure. The Nigeria governmentshould lead in rebuilding first a comprehensive, public and robustinfrastructure in order to open nondiscriminatory access toinfrastructure to all the people in Nigeria.Also, Nigeria government should partner with appropriate privateinstitutions to devise a viable process of attaining vivid infrastructuredevelopment in basic sector that will alleviate poverty, createemployment and position the country among prominent nation of theworld.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 31

THANK YOU FOR LISTENINGJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 32

• Abdu Ja’afaruBambale (2011) - NationalEconomic Empowerment Developmen• Strategy & Poverty Reduction In Nigeria: ACritique• Adelakun, S. (2008). - Travel to themost populated black nation on earth: Nigeria•• Adogamhe, P. (2007). The Nigeriannational economic empowerment anddevelopment strategy (needs): a criticalassessment•• Ayodele, A. (2008). IMF Forecasts 9Percent Growth for Nigeria. All Africa.com.•• Central Bank of Nigeria (2006). Economic &financial review.Vol. 44/3 SeptemberReference•• DFID, (2006). Nigeria Competitiveness andgrowth, poverty reduction and economicmanagement 3, Country Department 12, Africa• System of Land and Property Data• Sanusi Lamido Sanusi, Governor, Central Bank of•Nigeria. 2012• Adeyinka•• Global Competitiveness index•• Adam Smith International –•Infrastructure reform• Williamson,•2012(2012-2013)Nigeria1997• Infrastructure Concession Regulatory Commissionof Nigeria (Engr. Mansur Ahmed FNSE)• Oparaeke et al, 2010; babawale andodukoya, 2005).• Censar Queiroz (1992). Effective modes oftransport•J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 33

AppendixZonal Projects• SOUTH – SOUTH• On-Going Projects In• Calabar – Umuahia – Ajaokuta – Kaduna – Kano Gas Pipeline• Construction of 2 nd Niger Bridge across Asaba/Onitsha• Dualization of Benin – Obajana Road Construction of Bodo –Bonny Road with abridge across the opobo channel• Construction of new international terminal at Port Harcourt Airport• Construction of Bayelsa Airport• Resurfacing of runway at Calabar and Benin• Port Harcourt water supply project• Construction of modern coastal railway line (benin to Calabar)• Canalization / Reclamation of Land/Shoreline projection/ flood or erosioncontrol in various parts of the zone.•• Power and energy• Development and harnessing of solar, wind, coal, hydro and gas energy• Expand generation, transmission and distribution to address regional imbalances• Provide access to electricity for all to enhance economic development• Accelerate the construction of new roads in accordance with the needs of theeconomy to improve investment in agricultural and rural infrastructure• Continue the maintenance of existing roads to enhance service delivery.Capacity development will impact on the population• Review the design/structure of roads to service major growth centres•• Railway• Expand the existing railway system to every geopolitical zones and growthcentres in particular and upgrade narrow gauge to standard. This will promoterural development and accelerate movement of agricultural produce, which willenhance economic growth•••• Water Transportation• Ferry services to be promoted develop inland waterways within the variouszones to act as means of mass transportation for the movement of goods andservices and to prolong the lifespan of the roads.• SOUTH – EAST PROJECTS•• Oil and Gas• Calabar – Umuahia – Ajaokuta – Kano Gas pipeline – New• Gas supply from Obigbo North – Imo River – New• Gas supply to PHCN power plant at Alaoji – Ongoing•• Sea and River Ports• Onitsha inland river port/ Cargo handling equipment – ongoing•• Rail• Construction of east – West railway from Aba – Oweri – Onitsha – Asaba –Ogbasha Uku – Agbor – Benin – Lagos – New standard guage.• Lagos – Ife – Ilesha – Owo – Benin – Onitsha – Enugu (650km) - New standardguage.•• Commencement of Coastal Rail Line• Benin – Sapele – Warri – Yenogua – Portharcourt – Aba – Uyo – Calabar• - New Standard Guage•• Roads and bridges• Construction and Dualisation of (New) Owerri – Eile Road , Merelu Junction• Construction of 2 nd Niger bridge across river Niger at Onitsha / Asaba – New• Dualisation of Onitsa – Owerri and Onitsha – Eastern bypass C/5660 – New• Rehabilitation of Enugu 9 th Mile – Otukpo – Makurdi with a spur throughOtukpo – Lokoja - New•• Aviation• Construction of AIIA Enugu – Runway extension/expansion, metal operationalfence, control tower etc – New• Construction of cargo shed, office and other ancilliary at owerri at owerri aiport– new•• Water• Ishiagu water supply scheme - new• Aba – water supply rehabilitation – ongoing• Greater Onitsha water supply – ongoingJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 34

AppendixZonal Projects• SOUTH – WEST ZONE•• Identified infrastructure Shortages• Infrastructural Deficits• Housing inadequacy• Water and sanitation facilities are grossly inadequate• Transportation•• Roads• Inadequate trunk A roads. Many rural roads are not motorableespecially in the rainy season• Railway• Narrow gauge and not even extended to ondo and ekiti states•• Aviation• No airports in Ekiti and Osun states•• SeaPorts• Poorly developed in ogun and ondo states•• Power• Inadequate power supply• Some water reservoirs capable of generating electricity areuntapped.•• ICT• B. SOUTH-WEST ZONE•• Projects in Transformation Agenda Power•• Power plants at omotosho and olorunshogo to be completed.• Gas supply to Olorunsongo to be completed• Expansion of Escrvos – Lagos gas pipeline• Gas pipeline, from which Abeokuta – Ekiti•• Seaport Transport• Rehabilitation of Lagos East, West and Training habour modelsOlokola Badagy and Lekki deep seaports•• Railway• Lagos – Kano narrow gauge rehabilitation• New standard gauge Lagos – Ife – Ilesha – Owo _ benin•• Roads• Dualisation of Ibadan- Ilorin•• Airport•• Remodeling of MMAI, Ikeja• Rehabilitation of Akure airport•• Water and sanitation• No projects.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 35

AppendixZonal Projects• NORTH-WEST ZONE• Gas line• Calabar – Kaduna – Kano line. New 465bn•• Railway• Lagos – Kano – Narrow gauge rehabilitation• Zaria – Kaduna Namoda: Narrow GaugeRehabilitation.• Zaria – Kaura Namoda – Sokoto• Roads/Bridges• -Kano – Kazaure – Daura – Mail Adua Road (New)• -Kano – Western bye-pass ongoing• Rehabilitation of Kaduna – Kano road (new)• Dualization of Kano – Maiduguri Road (ongoing)• Rehabiliotation of Funtua – Yashiu – Daugi Kano StateBorder (ongoing)• Aviation• Construction of new international Terminal, Kanoairport (New)• Resurfacing of Taxi way at Kano (ongoing)• Water Resources• ABU Zaria water supply scheme (ongoing)• NORTH CENTRAL REGION• Based on Transformational Agenda 2011-2015• Sea and River port Infrastructure• Jamata/Lokoja – Ongoing• Markurdi Inland river-port – new• Railways• Portharcourt – Maiduguri – Narrow gauge – ongoing• (This project passes through the regime)• Roads/ Bridge Projects• Obajana – Benin road – new• Loko – Oweto bridge – ongoing• Abuja – Lokoja road – ongoing• Rehabilitation of Lafiya – Obi – Awe – Tonga Road –ongoing• Rehabilitation of Ilorin – Jebba – Mokwa _ Tegina _Kaduna Road• Rehabilitation of Enugu – Otukpo – Lokoja road –New• Water Resources Project• Zungeru / Wushishi water supply project – NewJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 36

AppendixSingapore Approach: 8.1.3 (Singapore as a Case Study)The development of infrastructure in Singapore did not happenwithout a number of challenges. Its small size and scarce naturalresources imposed severe challenges, but the authorities did acrucial thing right – they followed a systems approach with anunderstanding of how things influence one another.The result is the Singapore we know today: an attractive and greencity-state with large-scale, integrated and urban infrastructuresystems. The Singaporean model for socio-economic development isexemplary for both developmental economists focused on quickturnarounds as well as developed nations. What Singaporemanaged to achieve is no small triumph if you consider where theycame from. At independence in 1965, Singapore had only 580square kilometers of land. Jobs needed to be created for its manyunemployed citizens born during the baby boom years after theSecond World War who entered the job market in droves. Tosucceed and survive as an independent city-state, Singapore had tomeet its objectives of security, rapid socio-economic developmentand nation-building. The approach of the government of the day’sapproach was based on pragmatism – a governing style, called“management by objectives”.The most important task at hand was to build an urban system thatwould meet people’s most basic needs while using as little space aspossible. Central to the development of these solutions was a masterplan that coordinated multidimensional integration. There were twoimportant aspects to consider – integrating the demand for spacewith the functional needs for residential, industrial and commercialdevelopment.• Housing: Singapore is land-scarce and its government had tohouse the majority of people in high-rise buildings. Homes werebuilt at a phenomenal rate in the past 40 years and nearly 80% ofhousing is public housing. The success of this type ofaccommodation laid the foundation for many otherdevelopments. Public housing estates flowed from that to ensurethere was an even distribution of the population. To accommodatecitizens and minimizing their need to commute, public transportwas made available in the form of mass rapid transit systems –whether through light rail or buses. Emanating from the housingestates were schools, commercial centres, parks and otherrecreational facilities to ensure each estate was self-sufficient.Thecountry also developed new integrated residential andcommercial developments in new areas to reduce pressure on theCentral Business District.• Sewerage: To free up more space above ground and shallowersubterranean space, Singapore developed a deep tunnelsewerage system situated a depth of about 50m underground. Justas it was necessary to free up land space by building high-riseapartments there was a need to develop undergroundinfrastructure.• Aesthetic living, working and social spaces: By integrating thedrains, canals and reservoirs with the surrounding environment in aholistic way, Singapore succeeded in creating cleanstreams, rivers, and lakes with appealing community spaces for allto enjoy. Singapore has a vision to be a City in a Garden and itsNational Parks Board (NParks) is tasked with providing the greeneryin and around living and working spaces. NParks manages 300parks and four nature reserves. Adding to the lushness is theextensive streetscape, or roadside greenery, that forms thebackbone of the city in a garden-concept. An island-wide parkconnector network is also on the cards to link all the majorparks, nature areas and residential estates. NParks has developedan urban biodiversity conservation model, which aims to safeguard ecosystemsin land-scarce Singapore.J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 37

AppendixSingapore Approach: 8.1.3 (Singapore as a Case Study)• Traffic control: With 4,72km road per square kilometers of landarea, Singapore has the second-densest road network in theworld, after Belgium. Developing the necessary infrastructure totransport people and goods, Singapore had the followingsolutions: building rapid transit rail systems and establishingintegrated residential and commercial centres in new towns toreduce pressure on the Central Business District. Singapore wentone step further: the authorities encouraged Singaporeans touse public transport by imposing taxes to discourage privateownership of cars, while at the same time reducing taxes forvehicles that move goods that contribute to the economy.Integrating these policies allowed Singapore to establish aninfrastructure system that makes speedy movement of peopleand goods on land. But again – it involved a master plan thatintegrated various disciplines, such as town planning, roadplanning, public transport policies and taxation policies.• It also implemented an electronic road pricing (ERP) system thatcould allow the use of busier roads to be monitored. A road thatappears to have heavy traffic is subject to price increases thatreflect the intensity of traffic on the specific road.• Airports: Singapore has three military airfields, a general aviationairfield and the Changi International Airport that is ranked thesixth busiest airport in the world, handling millions of passengersdaily. The authorities designed new runways to accommodatethe new mega aeroplanes and the airport is directly linked tothe mass rapid transit system.• Planning, planning – and more planning: So how did Singaporemanage to evolve from a little trading post in the early 1800s toa city-state that is the envy of many large countries? The answerlies in planning within a master planning framework. Singapore isfortunate in that its political and social system encouragesintegration through policy-making. Although it is a small• country it achieved what many larger countries have yet toaccomplish.• Today Singapore’s Spectacular Statistics:It has the third highest per capita income inthe world.It is consistently ranked as one of the leastcorrupt countries in the world.It has the highest trade-to-GDP ratio in theworld at 407,9%, signifying the importance oftrade to its economy.It’s only Asian country to have AAA-creditratings from all three major credit ratingagencies –Standard &Poor’s, Moody’s, and Fitch.It’s the world’s fourth leading financial centre.The World Bank has named Singapore as theeasiest place in the world to do business.It has the world’s highest percentage ofmillionaires, with one out of every sixhouseholds having at least one million USdollars in disposable wealth.(Source: Gauteng’s Integrated InfrastructureMaster Plan and the Singapore ModelJ. Ajayi Patunola & Co.. Estate Surveyors & Valuers 38

AppendixLIST OF NON-CRITICAL OR URGENT PROJECTSS/N Project Title Sector Status Total Cost (N B)1 Construction 2nd runway AbujaInternational airportAviation New 5.32 Installation of 4 Doppler weatherradar Aviation NewAviation New 1.13 Procurement and installation.maintenance of ALSIM, Thales radarand visual tower simulators AviationNewAviation New 1.44 Construction of Bayelsa airportAviation OngoingAviation Ongoing 0.75 Fencing of all major airportsAviation OngoingOngoing 10.6Total 19.1J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 39

AppendixLIST OF NON-CRITICAL OR URGENT PROJECTSS/N Project Title Sector Status Total Cost (N B)1 Completion of abandoned Post Officebuildings nationwide to make theminternet compliantICT New 5.72 Construction Of New ICT Compliant PostOffices (Neighbourhood Pb4 Type)ICT New 2.53 National Street Address system ICT New 9.04 ICT Infrastructure ICT New 11.45 Rehabilitation & Remodelling of ExistingPost Office Buildings Nation Wide toBecome ICT CompliantICT New 19.3Total 48.9J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 40

AppendixLIST OF NON-CRITICAL OR URGENT PROJECTSS/N Project Title Sector Status Total Cost (N B)1 Rehabilitation and expansion of transmission/Distribution Networks and InfrastruturePower Ongoing 314.22 Construction of 10MW Katsina wind Project Power New 0.83 Construction of 215MW Low Pour Fuel Oil (LPFO)Power Plant in KadunaPower New 15.04 Construction of 230 300MW Dual Power Plantusing gas in BadagryPower New 5.25 Construction of coal-fired power plant in 3 States(Enugu, Benue and Gombe) Power New 27.7 6 SolarRural Electrification Project in 4 Communities;Ogun, bauchi and Katsina PowerPower New 16.7Total 35.19J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 43

AppendixLIST OF NON-CRITICAL OR URGENT PROJECTSS/N Project Title Sector Status Total Cost (N B)1 Construction Of Bodo-Bonny Road With ABridge Across The Opobo Channel. C/No. 5662NigerNiger Delta New 2.62 Construction of skills acquisition centers in thenine states of the Niger Delta region NigerDelta NewNiger Delta New 6.23 Equipping and operations of skill acquisitioncentres Niger Delta New 0.7Niger Delta New 0.74 Land reclamation, shoreline protection andflood/erosion control for seven states: Azumni -abia States, Ibakan Nsit-Akwa Ibom State, Odi -Bayelsa state, Essien town - Cross River State,Ijaghalla - Delta State, Okhelen Awo -Edo Stateand Amadi Ama - Rivers State Niger Delta New2.85 Dualization of East-West Coatal road projectsection 1 Niger Delta Ongoing 14.5Niger Delta New 2.8Niger Delta Ongoing 14.5Total 25.8J. Ajayi Patunola & Co.. Estate Surveyors & Valuers 44