AltBank Says Public Funds Cannot Close Nigeria Infrastructure Gap

The Alternative Bank said public funds alone cannot close the infrastructure financing gap in Nigeria ^[1].

This assessment highlights a critical vulnerability in Nigeria's development strategy. As government budgets struggle to keep pace with the needs of a growing population, the reliance on state funding threatens to stall essential projects in transportation, energy, and urban development.

According to AltBank, the government's limited fiscal resources are already strained by competing demands ^[1]. This pressure makes public budgets insufficient to meet the country's growing infrastructure financing needs ^[2]. The bank said the current fiscal trajectory is unsustainable for the scale of work required to modernize the nation's assets.

To bridge this divide, AltBank said there is a need for a large increase in private-sector investment ^[1]. The bank specifically identified the need for a surge in private capital and the adoption of non-interest finance ^[2]. By diversifying the sources of funding, Nigeria could potentially accelerate the completion of stalled projects, and initiate new developments without further straining the national treasury.

Non-interest finance, which avoids traditional interest-based lending, is presented as a viable tool to attract a broader range of investors ^[1]. This approach could open doors for capital that is otherwise restricted by religious or ethical guidelines, providing a new stream of liquidity for large-scale public works.

AltBank said the shift toward private-sector participation is not merely an option but a necessity ^[2]. Without a strategic pivot toward these alternative funding models, the gap between available funds and infrastructure requirements is expected to widen, leaving critical sectors underfunded.