Infrastructure Financing through Islamic
Finance in the Islamic Countries
114
The low levels of infrastructure quantity and quality imply that the investment in the sectors
has not been adequate. Chart 4.3.3 shows the involvement of the private sector in
infrastructure development over the 2005-2010 and 2011-2016 periods. The bulk of the
private sector investments appear to have been made in the telecommunications sector during
both periods (USD 16.696 billion in 2005-2010 and USD 7,083 billion in 2011-2016) followed
by the transport sector (USD 3.099 billion in 2005-2010 and USD 4,659 billion in 2011-2016).
Although the energy sector also had some investments during these periods (USD 1,108 billion
in 2005-2010 and USD 1,287 billion in 2011-2016), there were no investments made in the
water and sanitation sector.
Chart 4.3. 3: Private Sector Investment in Infrastructure: Nigeria (USD Million)
Source: World Bank Development Indicators
Table 4.3.4 shows the infrastructure investments that are projected for 2016-2040 under the
assumption of current trends and investment needs. Over the period, there seems to be a
shortfall of USD 221 billion with most of it needed in roads (USD 80 billion), followed by
electricity (USD 61 billion), telecoms (USD 47 billion) and railways (USD 21 billion).
Table 4.3. 3: Infrastructure Needs and Gaps Nigeria 2016-2040
(USD billion 2015 prices and exchange rates)
Road Rail Airports Ports Telecoms Electricity Water Total
Current trends (CT) 164 20 16 80 89 205 82 657
Investment need (IN) 248 40 19 86 137 267 82 878
Gap between IN and CT 84 21 3 5 47 61 0 221
Source: Global Infrastructure Outlook
Nigeria developed the National Integrated Infrastructure Master Plan (NIIMP) in 2014 to fast-
track infrastructure development in Nigeria. The projected deficits according to the
Masterplan for the period 2018-2043 are even higher. The total required infrastructure
financing requirements for the various sectors (transportation, energy, agriculture water and
mining, housing sector, social sector infrastructure, vital registration and security sector and
16,696.10
1,108.00
3,099.60
7,083.10
1,287.30
4,659.40
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
Telecommunications
Energy
Transport
Water & Sanitation
Telecommunications
Energy
Transport
Water & Sanitation
2005-10
2011-16