The document analyzes Nigeria's ranking on infrastructure in the Global Competitiveness Index from 2006-2012. Key findings include:
- Nigeria's infrastructure ranking declined from 95th in 2006 to 130th in 2012 out of 144 countries surveyed.
- Areas of weakest infrastructure were quality of electricity supply (138th in 2012), quality of roads (114th in 2012), and quality of railroad infrastructure (95th in 2012).
- To improve economic growth and development, the document recommends Nigeria prioritize improving quality of roads, expanding railroad infrastructure, and increasing electricity supply.
2. The World Economic Forum (WEF) Geneva,
Switzerland produces a yearly report to measure
countries and regions competitiveness among
Nations of the world using Global Competitiveness
Index (GCI)
This presentation focuses on Nigeria’s GCI rating
from 2006 – 2012 on the 2nd Pillar: Infrastructure
Pillar: Infrastructure,
for the purpose of knowing how quality our
Infrastructure are over a period of 7years as this
would help know where more efforts need to be
applied in order to achieved better growth and
development.
2nd Pillar: Infrastructure
Pillar:
3. The 12 Pillars of GCI
Institutions
Infrastructure BASIC
REQUIREMENTS
Macroeconomic Environment
Health and Primary Education
Higher Education & Training
Goods Market Efficiency
Labor Market Efficiency
EFFICIENCY
Financial Market Development ENHANCERS
Technological Readiness
Market Size
Business Sophistication
Innovation INNOVATION &
SOPHISTICATION
FACTORS
4. Extensive and efficient Infrastructure is critical for ensuring the effective
functioning of the economy, as it is an important factor in determining the
location of economic activity and the kinds of activities or sectors that can
develop in a particular instance.
Well-developed infrastructure:
Reduces the effect of distance between regions,
Integrates national markets,
Connects at low cost markets in other countries and regions,
Impacts economic growth,
Reduces income inequalities and poverty in a variety of ways,
Enables goods and services to market in a secure and timely manner,
Facilitate the movement of workers to the most suitable jobs.
Economies also depend on electricity supplies that are free of interruptions
and shortages so that businesses and factories can work unimpeded. Finally,
a solid and extensive telecommunications network allows for a rapid and
free flow of information, which increases overall economic efficiency by
helping to ensure that businesses can communicate and decisions are made
by economic actors taking into account all available relevant information.
5. There were 9 indicators used in measuring the strength of Nigeria’s
Infrastructure:
Quality of overall infrastructure
Quality of roads
Quality of railroad infrastructure
Quality of port infrastructure
Quality of air transport infrastructure
Available airline seat kms/week, millions
Quality of electricity supply
Mobile telephone subscriptions/100 pop.
Fixed telephone lines/100 pop.
Each indicator were ranked (based on the number of countries surveyed) and scored
from 1-7, 1 being the least.
Except for Quality of railroad infrastructure which was measured in 2011 and 2012, all
other indicators were measured from 2006 to 2012.
6. Nigeria Ranking & Scores
Year Country Count Rank Score Effort
2006-2007 121 95 2.42 21.49%
2007-2008 131 119 2.20 9.16%
2008-2009 134 120 2.24 10.45%
2009-2010 133 127 2.29 4.51%
2010-2011 139 135 2.02 2.88%
2011-2012 142 135 2.21 4.93%
2012-2013 144 130 2.28 9.72%
Effort = 1 – C3/C2
Nigeria’s best effort was made in 2006 with a 21.49% performance,
ever since, there has been consistent deterioration in the rankings
as well as scores. However, between 2010 and 2012, some
measure of growth were experienced. As at today, Nigeria ranks
130th of 144 countries in terms of infrastructural development.
7. Scores, being measured from 1 – 7, with 1 being the worst performance and
7 the best, it is safe to assume that a minimum benchmark should be 3.5 so
as to focus on indicators which are below this value.
The following indicators reflects areas where attention are most need:
Indicators 2006 2007 2008 2009 2010 2011 2012
Infrastructure 2.42 2.20 2.24 2.29 2.02 2.21 2.28
Quality of overall infrastructure 2.63 2.35 2.38 2.43 2.42 3.03 3.23
Quality of roads 2.41 2.21 2.32 2.55 2.39 2.72 2.77
Quality of railroad infrastructure 1.58 1.89
Quality of port infrastructure 3.05 2.69 2.62 2.80 2.98 3.31 3.55
Quality of air transport infrastructure 3.91 3.54 4.22 4.35 3.88 3.85 4.00
Quality of electricity supply 1.93 1.69 1.56 1.46 1.34 1.45 1.69
A closer look at the above shows a downward trend in
the score of Indicator: Quality of electricity supply, with
worst performance in both Quality of Electricity supply
and Quality of railroad infrastructure.
8. Indicators 2006 2007 2008 2009 2010 2011 2012
Infrastructure 2.42 2.20 2.24 2.29 2.02 2.21 2.28
Quality of roads 2.41 2.21 2.32 2.55 2.39 2.72 2.77
Quality of railroad infrastructure 1.58 1.89
Quality of electricity supply 1.93 1.69 1.56 1.46 1.34 1.45 1.69
Amongst others, these three deserve urgent attention:
Quality of roads ------- 114/144 (2012)
Quality of railroad infrastructure ------- 95/144 (2012)
Quality of electricity supply ----- ------- 138/144 (2012)
Several road accidents attest to the level of
deterioration in Nigeria roads. With a population
of over 160million, Nigeria produces less than
5,000MegaWatt of electricity!
9. It is worth mentioning that the indicator: Quality of air transport
infrastructure, scores highest with 4.00 of 7.
In light of recent accidents, this achievement is contestable following
about 3 air mishaps in 2012 involving a commercial airline (Lagos)
where over 152 passengers lost their lives and 2 involving a Police
helicopter (Jos) and a Naval aircraft (Bayelsa).
5.00
4.50
4.00
3.50
Quality of overall infrastructure
3.00
Quality of roads
2.50 Quality of railroad infrastructure
2.28 Quality of port infrastructure
2.00
Quality of air transport infrastructure
Quality of electricity supply
1.50
1.00
0.50
0.00
1 2 3 4 5 6 7 Average point
2012 score
10. Nigeria currently ranks 130th of 144
Nations in Infrastructural development, with
the quality of resources Nigeria is endowed
with, this is definitely an aberration.
If the Government and other Stakeholders
concentrates on improving the Quality of
Roads,
Roads the Quality of Railroad and the
Supply of Electricity
Electricity, Nigeria would
experience some measurable developments
which would eventually lead to better
scores and ranking.