A Review of Critical Factors in Budgetary Financing of Public Infrastructure in Nigeria

Authors: Akintayo Opawole, Godwin O. Jagboro

Abstract:

Research efforts on infrastructure development in Nigeria had not provided adequate assessment of issues essential for policy response by the government to address infrastructure deficiency. One major gap existing in previous studies is the assessment of challenges facing the budgetary financing model. Based on a case study of Osun State in Southwestern Nigeria, factors affecting budgetary financing of public infrastructure were identified from literature and brainstorming. Respondents were: 6 architects, 4 quantity surveyors, 6 town planners, 5 estate surveyors, 4 builders, 21 engineers and 26 economists/accountants ranging from principal to director who have been involved in policy making process with respect to infrastructure development in the public service of Osun state. The identified variables were subjected to factor analysis. The Kaiser-Meyer-Olkin measure of sampling adequacy tests carried out (KMO, 0.785) showed that the data collected were adequate for the analysis and the Bartlett’s test of sphericity (0.000) showed the data upon which the analysis was carried out was reliable. Results showed that factors such as poor collaboration between the state and local government establishments, absence of credible database system and inadequate funding of maintenance were the most significant to infrastructure development in the State. Policy responses to address challenges of infrastructure development in the state were identified to focus on creation of legal framework for liberation policy, enforcement of ‘due process’ in the procurement and establishment of monitoring system for project delivery.

Keywords: development, infrastructure, financing, procurement