Impact Of Infrastructure Financing On Sustainable Development In Nigeria.

ABSTRACT

The study examined the impact of infrastructure financing on sustainable development in Nigeria for a period of thirty-nine (39) years, from 1981 to 2019. The Ex-post facto research design was adopted. Secondary data was collected from the National Bureau of Statistics (NBS) for various years. The study used Real Gross Domestic Product (RGDP) as a proxy for sustainable development. Error Correction Model  multiple regression techniques and E-view statistical software 8 were used to analyze the data. The data were first subjected to pre estimation test such as unit root test and cointegration test. The unit root result showed that the variables were stationary at first difference while the Cointegration result showed that the variables have no long run relationship with RGDP. Because of the result of the Cointegration test, error correction model regression was used to test the hypotheses. The error correction model regression data results showed that telecommunication infrastructure and utility infrastructure (proxied by Infrastructure financing) have insignificant impact on sustainable development in Nigeria. Again, environmental infrastructure and transportation infrastructure (proxied by Infrastructure financing) has significant impact on sustainable development in Nigeria. Based on these findings, the study concluded that there is a positive relationship between the components of infrastructure financing and sustainable development in Nigeria. Hence, the study recommended that: Government should sustain the level of investment on transportation infrastructure, and environmental infrastructure because of their contribution to sustainable development in Nigeria. It further recommends that Government should review her investments on utility infrastructure and ensure they are well utilized for improved sustainable development in Nigeria.

 

 

 

 TABLE OF CONTENTS

Tittle page                                                                                                                               i

Declaration                                                                                                                              ii

Dedication                                                                                                                               iii

Certification                                                                                                                            iv

Acknowledgements                                                                                                                v

Table of contents                                                                                                                     vi

List of tables                                                                                                                           x

List of figures                                                                                                                         xi

            Abstract                                                                                                                                  xii

           

CHAPTER 1:   INTRODUCTION

 

1.1 Background to the Study                                                                                                 1

1.2 Statement of the Problem                                                                                                 5

1.3 Objectives of Study                                                                                                          7 

1.4 Research Questions                                                                                                           7

1.5 Hypotheses                                                                                                                       8

1.6 Significance of the Study                                                                                                             8         

1.7 Scope of the Study                                                                                                           9

1.8 Limitations of the Study                                                                                                   9

1.9 Operational Definition of Terms                                                                                       10

CHAPTER 2:            REVIEW OF RELATED LITERATURE

2.1       Conceptual Framework                                                                                               11

2.1.1    Concept of infrastructure                                                                                            11

2.1.2    Impact of infrastructure on the economy                                                                   13 2.1.3    Infrastructure financing in nigeria.                                                                            14

2.1.4    Assessment of infrastructure financing and growth in nigeria                                   14

2.1.5    Stylized facts on infrastructure financing and growth in nigeria                               16

2.1.6    Present state of infrastructure in nigeria                                                                     20

2.1.7    Service infrastructure                                                                                                  21

2.1.8    Categories of service infrastructure                                                                            22

2.1.9    Social infrastructure                                                                                                   25                                          

2.1.10  Security infrastructure                                                                                               25

2.1.11  Some practices in financing infrastructure and services in nigeria.                            27

2.1.12  Traditional infrastructure delivery process                                                                  28

2.1.13  The sustainable development goals (SDG’s) global agenda                                      30

2.1.14Transforming our world: the 2030 agenda for SDGs.                                                  31

2.1.15  Targets of the sustainable development goals                                                            31

2.1.16 Infrastructure financing and sustainable development                                                38

2.1.17  Means of implementation:                                                                                          40       

2.1.18 Measurements of sustainable development goals                                                        41

2.2       Theoretical Framework                                                                                               47       

2.2.1    Infrastructure growth theory                                                                                      47

2.2.2    The Classical theory of economic development                                                         49

2.2.3    The dependency theory                                                                                              50

2.3       Empirical Review                                                                                                        51

2.4       Summary and Gap in Literature.                                                                                65

CHAPTER 3:  METHODOLOGY

3.1        Research Design                                                                                                        66

3.2       Area of the Study                                                                                                      66

3.3       Sources and Method of Data Collection                                                                    67

3.4       Model Specification                                                                                                    67

3.5       Description of Model Variables                                                                                  68

3.5.1    Dependent variable                                                                                                    68

3.5.2    The independent variables                                                                                          68

3.6       Method of Data Analysis                                                                                           69

3.7       Decision Rule                                                                                                              71

CHAPTER 4: DATA PRESENTATION, ANALYSIS, AND DISCUSSION OF FINDINGS

4.1 Data Presentation                                                                                                              72

4.1.1 Trend analysis of environmental financing in nigeria                                                    76

4.1.2 Trend analysis of telecommunication financing in nigeria                                             77

4.1.3 Trend analysis of transportation financing in nigeria                                                     77

4.1.4 Trend analysis of utility financing in nigeria                                                                  78

4.1.5 Trend analysis of real gross domestic product (RGDP) of nigeria                                78

4.2 Pre-Estimation Tests                                                                                                         82

4.2.1 Stationarity/ unit root tests                                                                                             82

4.2.2 Cointegration test results                                                                                               83

4.3 Test Of Hypotheses                                                                                                          86

4.3.1 Decision rule for hypotheses’ tests                                                                                87

4.4 Discussion of Findings                                                                                                     92

4.4.1 Impact of transportation infrastructure financing on sustainable development             92

4.4.2 Effect of environmental infrastructure financing on sustainable development             93

4.4.3 Impact of utility infrastructure financing on sustainable development                         93

4.4.4 Effect of telecommunication infrastructure financing on sustainable development      94

CHAPTER 5:            SUMMARY, CONCLUSION, AND RECOMMENDATIONS

5.1 Summary of Findings                                                                                                        95

5.2  Conclusion                                                                                                                        96

5.3 Recommendations                                                                                                             96

5.4 Contribution to Knowledge                                                                                              97

5.5 Suggestion for Further Studies                                                                                         98

 

   References                                                                                                              

 

   Appendices