Attracting $100bn Investments Towards Achieving $30,000 Per Capital GDP

Nigeria needs $100bn yearly in infrastructure to meet its 2050 economic goal of achieving a per capital Gross Domestic Product of $30,000 – the Federal Government has said.

Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, made this known last week in Abuja during a courtesy visit by the new Japanese Ambassador to Nigeria, Hideo Suzuki.

Bagudu stressed that road infrastructure is central to economic development, noting that Nigeria relies heavily on land transport for the movement of goods and services.

He said the government is strengthening ties with global partners like Japan to accelerate infrastructure upgrades and unlock long-term growth.

“Our Agenda 2050 Long-Term Development Plan has identified a minimum annual infrastructure investment requirement of $100 billion if we are to meet our target of $30,000 per capita GDP by 2050.

“In alignment with President Bola Tinubu’s eight-point agenda, we are also working toward building a $1 trillion economy within the next five years. This is an ambitious goal, and we are already more than 10 percent of the way there,” Bagudu said.

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The minister expressed confidence in the potentialities of the Japanese International Cooperation Agency to play a significant role in Nigeria’s transformation, citing its global reputation for impactful development work.

He also welcomed Japan’s expanding footprint in Nigeria and noted that exchange of ideas and solutions between both countries would enhance their development goals.

Ambassador Suzuki, while speaking at the meeting, shared updates on Japanese-led development efforts in Nigeria.

He said the “Data Collection Survey on Transport and Logistics in Nigeria” is progressing well and is part of a larger collaboration with the Nigerian government.

He also highlighted the Project for the Development of Supporting Environment for Startups and Addressing Social Challenges, signed in Abuja in April 2024.

According to him, the initiative the first of its kind globally has drawn significant interest in Tokyo for its creative and inclusive approach.

Other key projects supported by Japan include the FCT Reduction of Non-Revenue Water Project, the Promotion of Market-Oriented Agricultural Extension Systems for Livelihood Improvement, and the Post-Harvest Processing and Marketing Pilot Project in Nasarawa and Niger States.

“These projects show Japan’s strong commitment to working with Nigeria in developing inclusive and effective solutions to real-world challenges. We hope to deepen our engagement across sectors and contribute to Nigeria’s development aspirations,” he stressed.

Suzuki officially assumed his role following the departure of his predecessor, Ambassador Matsunaga Kazuyoshi, who served in Nigeria for four years.

Also speaking, Director overseeing the Office of the Permanent Secretary and Director of the International Cooperation Department, Samson Ebimaro, emphasised that the ministry’s mandate is to drive national growth by boosting productive sectors and attracting investment.

“Delivering on key economic targets requires reliable and modern infrastructure systems, particularly in transportation. This is central to boosting GDP and energizing economic activity,” he said.

Which beggars a pertinent question. What challenges mitigate against Nigeria’s potentialities in meeting its 2050 GDP target? Studies conducted by The Daily Times Research Desk indicate that several factors constitute encumbrances in that direction. First is the issue of high inflation. With rates expected to remain above 30%, it should be difficult to navigate structural bottlenecks, impacting consumer demand and economic growth.

Second, oil price volatility. The country’s economy is heavily reliant on crude oil prices and fluctuations in global oil markets which pose a significant risk to GDP growth. If crude oil prices drop to $40 per barrel, GDP growth could fall to 0.8%, while prices above $72 per barrel could lead to 3.8% growth. Third, infrastructure deficits. Statistics have it that Nigeria needs $100 billion investments in infrastructure annually to achieve its GDP targets. This highlights the need for significant investment in this sector.

Fourth, fiscal discipline. Strengthening fiscal discipline and expanding the tax base through comprehensive reforms are crucial for sustainable growth. Fifth, structural reforms. Implementing structural reforms to attract investment, particularly in manufacturing and technology sectors, is essential for economic diversification. Sixth, Naira volatility. The volatility of the Naira against the US dollar contributes to economic instability, affecting investor confidence and economic growth.

Seventh, poverty and social unrest. With poverty rates at 56% in 2024, social unrest poses a significant risk to economic stability and growth. Eighth, debt management. Nigeria’s debt-to-GDP ratio and debt vulnerabilities need to be managed effectively to ensure economic stability.

Unarguably, it goes without saying that the aforementioned challenges highlight the need for a multi-faceted approach to address Nigeria’s economic growth and stability. By tackling these issues, Nigeria can work towards achieving its 2025 GDP target and promoting sustainable economic growth.

Let us at this juncture, interrogate how Nigeria can leverage opportunities geared towards attracting $100 billion in infrastructure investments annually. This is crucial if the largest economy in Africa (according to the World Bank in February 2025) is to achieve its ambitious goal of a $30,000 per capita GDP by 2050.

We, hereby, articulate some strategies to make the envisaged dream come true.

For starters, strengthening Public-Private Partnerships (PPPs) is key. The Nigerian government has already taken steps to strengthen PPPs, which can help attract private investment and ensure sustainable project financing.

Next, by creating a more investor-friendly environment, the government can encourage private sector participation in infrastructure development.

Again, the government must intensify implementation of targeted strategies to address under-investment in critical infrastructure, such as transportation, energy and healthcare. These strategies include reforms in construction regulations, land acquisition laws, and infrastructure funding.

Similarly, the role of international cooperation cannot be overstressed. Currently, Nigeria is seeking stronger partnerships with international allies like Japan, leveraging the expertise of organizations like the Japanese International Cooperation Agency (JICA) to deliver impactful development projects.

Collaboration with international organizations can provide valuable expertise and funding opportunities.

Moreso, Infrastructure Project Development Facility can make things happen. Federal government has created an Infrastructure Project Development Facility to finance early project development activities and create a pipeline of bankable PPP projects. This facility can help attract private sector investment and ensure project viability.

In addition, the government must continue to focus on key sectors like transportation, energy, and healthcare, which require significant investments to bridge the infrastructure gap. By prioritizing these sectors, Nigeria can create opportunities for investment and drive economic growth.

Likewise, to attract investment, Nigeria needs to demonstrate a commitment to economic reforms and stability. By implementing policies that promote economic growth and stability, the government can create a more attractive investment environment.

And attract the necessary investments to achieve its GDP target and drive economic growth.