Lagos - Infrastructure spending in Nigeria is expected to grow by more than 200 percent by the year 2025 as the country establishes itself as the continent’s biggest economy.
This is according to projections released by PricewaterhouseCoopers (PwC), the multinational professional services network.
According to PWC, overall infrastructure spending will increase from$23 billion in 2013 to $77 billion in 2025.
“A more investor-friendly environment towards oil investment is also likely to boost this projection further,” the firm stated.
It said Nigeria will overtake South Africa as the biggest spender.
The West African country’s economy recently went past South Africa’s as the continent’s biggest.
“Infrastructure spending overall is forecasted to reach around $60 billion by 2025 for South Africa, having grown by 10 percent on average a year.
However, South Africa is likely to lose share of regional spending relative to Nigeria. Nigeria’s better fiscal position and oil revenues will likely enable it to outperform South Africa over the coming decade,”
PwC projects overall infrastructure spending in the sub-Saharan region is projected to grow by 10 percent a year over the next decade – exceeding $180 billion by 2025 – while maintaining its 2 percent share of the global infrastructure market.
Nigeria and South Africa dominate the infrastructure market, but other countries like Ethiopia, Ghana, Kenya, Mozambique, and Tanzania are also poised for growth.
Growth prospects in most of the region’s economies look promising as they were not affected as much by the global financial crisis of 2008.
– CAJ News
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