Overview

This document is a keynote address delivered by Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria, at the 3rd ICRC PPP Stakeholders Forum on July 18, 2012. The speech focuses on the role of development finance institutions in infrastructure development, drawing lessons from Brazil's BNDES and India's Infrastructure Finance Company. Sanusi highlights the severe infrastructure deficit in Africa and Nigeria, noting that inadequate infrastructure causes a 2% annual decline in economic growth in Africa. He states that Africa needs about $93 billion per year for infrastructure, with Nigeria requiring $10 billion annually for a decade. Currently, Nigeria invests about 7% of GDP in infrastructure, but needs at least 12%. Key challenges include non-availability of long-term funds, absence of risk-sharing mechanisms, and limited private sector participation. Sanusi outlines Nigeria's infrastructure gaps: 70% of roads in poor condition, power outages totaling over 320 lost days per year, over 60% without electricity, and $13 billion spent annually on generators. The address emphasizes learning from BNDES, which provides long-term financing and has supported major infrastructure projects in Brazil, and from India's infrastructure finance company model. Sanusi concludes by urging stakeholders to adopt innovative financing models to bridge the infrastructure gap.

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