Nigeria’s infrastructure stock constitutes only 30% of GDP below 70% benchmark for middle-income economies – Dr. Bola Mudasiru

28 Jun 2025
By Matthew Denis

The Deputy National Chairman of the Nigerian Institution of Highway and Transportation Engineers (NIHTE), Engr. Dr. Bola Mudasiru has posited that the Nigeria’s infrastructure stock currently constitutes only 30% of GDP which is below the 70% benchmark recommended for middle-income economies.

He made the disclosure while speaking on the theme Nigeria Transportation Infrastructure: Navigating Progress, Challenges and Opportunities for Sustainable Growth at the 2025 Public Lecture and induction ceremony of new Engineers held by Nigeria Society of Engineers (NSE) Lagos Branch in partnership with NIHTE yesterday.

Dr. Bola expressed that transportation infrastructure serves as the literal and figurative foundation upon which Nigeria’s economic aspirations rest. Efficient movement of people and
goods is essential for productivity, competitiveness, and sustainable growth.

“As Nigeria pursues economic diversification beyond oil dependence, the quality and reach of its transportation networks will significantly determine the pace and inclusivity of development across all sectors and region.

“Nigeria’s infrastructure stock currently constitutes only 30% of GDP, well below the 70% benchmark recommended for
middle-income economies. This significant gap reflects decades of underinvestment, maintenance neglect, and planning challenges.

“Addressing these fundamental issues requires not only increased funding but also substantial reforms in project selection, implementation approaches, and asset management practices

The expert revealed that Nigeria’s construction sector has demonstrated robust growth, expanding by 8% in 2025 to reach a value of NGN 25.72 trillion. This growth reflects increasing investments across infrastructure categories, with transportation projects representing approximately 40% of the total. Funding sources have diversified, with significant contributions from federal budgets, multilateral institutions like the Africa Finance Corporation (AFC) and African Development Bank (AfDB), as well as growing private sector participation through various investment vehicles.

“Transport infrastructure directly enables over 30% of GDP-linked
activities, serving as the foundation for industrial operations, agricultural distribution, and service delivery.”

Speaking on the types of transportation system in Nigeria, he said Over 200,000 km of roads form the primary transport infrastructure, carrying approximately
90% of passenger and freight traffic. However, only about 15% are paved, resulting in poor connectivity and significantly increased vehicle operating costs across regions.

“The railway infrastructure spans roughly 3,500 km of rail lines, but operates with limited capacity. This underdevelopment means rail contributes less than 1% to the transportation sector’s overall GDP despite its massive potential.

He pointed out that recently upgraded standard gauge lines connect major economic corridors between lagos, Ibadan, Abuja and Kaduna. Traditional
narrow-gauge network requires further
modernisation despite recent investments.

On the Aviation sector he stressed that
Nigeria maintains 22 airports, though only six offer international connections, with just three handling 92% of passenger traffic.

Dr. Mudasiru explained that in the maritime sector there are six major seaports handle 90 percent of Nigeria’s
imports and exports, with Lagos ports
experiencing significant congestion.

He said ” Inland waterways remain underdeveloped despite their potential. The maritime sector received a boost with the 2023 inauguration of Lekki Deep Sea Port, designed to handle 2.5 million containers annually.

According to him, the total value of Nigeria’s used vehicle import increased significantly from N 325.05 billion in 2022 to N 1.063 trillion in 2023, marking an increase of 226% over a one-year period. All of these indices clearly
justify the need to enhance road infrastructure delivery to support our expanding population currently
estimated at 229.2 million people (UNPF, 2024).

On challenges he reiterated that despite recent investments, approximately 40% of Nigeria’s road network remains in poor condition noting that rural areas are particularly affected, with many communities still relying on unpaved roads that become impassable during rainy seasons.

“Massive Funding Gap $878 billion deficit projected by 2040, maintenance neglect, premature deterioration increases long-term costs, Policy Inconsistency, Regulatory uncertainty deters long-term investors, underutilized Assets, new facilities built without corresponding demands are setback to transport infrastructure.

“The rapid growth in vehicle ownership has accelerated road deterioration, with many highways carrying traffic volumes far exceeding their design capacity especially with loaded and unregulated trucks movements. The rail sector needs advance funding models and technical attentions.

“The maintenance funding deficit is estimated at NGN 500 billion annually, creating a vicious cycle where roads
deteriorate faster than they can be repaired. This underinvestment in maintenance ultimately leads to much
higher reconstruction costs.

He suggested that strengthened legal frameworks will provide clearer guidelines and protections for private investors in infrastructure projects.

“Nigeria has made significant strides in transportation infrastructure development, yet much work remains to create a truly world class, sustainable system. The coming years will be defined by how effectively the country balances ambitious expansion with
maintenance needs, technological innovation with fundamental connectivity, and economic imperatives with environmental responsibilities.”

some of the high-profiled personalities at the event were Engr. Margaret A. Oguntala (NSE President) ably represented by Engr. Oluyemi Oludayo (Past National Chairman, NIHTE),
Engr. Francis Oriakhi ably represented by Engr. Opanuga (Past VC, NIHTE),
Engr. Olukorede Kesha (Chairman, NSE Lagos branch), and Engr. Olufisayo Badmus (Chairman, NIHTE Lagos Chapter)