Sustainable infrastructure development in sub-nations of Nigeria: what alternative financing options are open amidst constrained budget?
Sustainability Accounting, Management and Policy Journal
ISSN: 2040-8021
Article publication date: 25 June 2024
Issue publication date: 20 November 2024
Abstract
Purpose
This paper aims to examine the alternative financing available for sustainable infrastructure development in Nigeria’s sub-nations. Specifically, the study question is: what financial vehicles do sub-nations seek most, and what are the underlying reasons for their preferences?
Design/methodology/approach
The study used a two-round Delphi method, using a questionnaire to gather data from high-ranking government officials in states that have localised sustainable development projects in Nigeria.
Findings
Results show that fundamental to sub-national sustainable infrastructure projects are federal allocations, pension funds, private equity, bonds and concessionary grants. Sub-nationals prefer these options, especially the emphasis on private equity, and the concessional funding through catalytic or blended finance because of their relatively lower or below-market interest rates.
Practical implications
The practical significance of this study is that the state’s policymakers can now identify appropriate strategies that enhance the shift towards these sustainable financing options, which will serve as a key catalyst in their 2030 and beyond vision to accelerate their state's infrastructure climate complaint. Equally, investors possessing funds with such attributes will gain an understanding of a prospective market within Nigeria’s sub-nation.
Social implications
This study aims to improve the development of sustainable infrastructure in Nigeria’s sub-nations, which would have a beneficial effect on society by mitigating the effects of climate change.
Originality/value
The recommendations of this study can contribute to the development of innovative financial models for sub-national infrastructure development, thereby reducing reliance on revenue generated from fossil fuels.
Keywords
Acknowledgements
The author would like to express his heartfelt gratitude to all individuals who took part in the field work, particularly those who played a crucial role in enabling the collection of data. Lastly, he would like to express his gratitude to the anonymous reviewers of this paper for their commendable patience. The experience was highly unpredictable and filled with commendable insights.
Funding: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Citation
Anago, J.C. (2024), "Sustainable infrastructure development in sub-nations of Nigeria: what alternative financing options are open amidst constrained budget?", Sustainability Accounting, Management and Policy Journal, Vol. 15 No. 6, pp. 1378-1407. https://doi.org/10.1108/SAMPJ-02-2023-0054
Publisher
:Emerald Publishing Limited
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