Infrastructure finance mechanism and challenges in Nigeria

Infrastructure financing through public-private partnership (PPP) can play an important role in addressing chronic deficiency of infrastructural facilities in developing economies. Inadequate infrastructural facilities discourage investments and retards economic development. Traditional methods of financing infrastructure through budgetary provisions and execution by direct contract award has proven to be inadequate and most often unimplemented creating a financing gap for execution of infrastructure projects in developing countries. This paper assesses the nature of infrastructure financing in Nigeria and highlights the major models of PPP as well as some of the challenges encountered in the mobilising this type of financing. The paper concludes with some suggestions on ways to address the identified challenges