The socio-economic drivers of public infrastructures development in Nigeria

Abstract

The infrastructure development significantly contributes to economic growth and development of any economy. Infrastructure economists believe that infrastructure development also has relationship with a number of socio-economic indicators such as unemployment and gross domestic product per capita, etc. This study investigated the socio-economic drivers that influence infrastructures development (proxy by building and construction economic sector share of GDP) in Nigeria. Using available time series data on public capital expenditure, unemployment rate, inflation rate, population number, gross domestic product per capital and interest rate between 1980 to 2017, subjected to econometric analysis, the result identified unemployment and gross domestic product per capita as socio-economic drivers of infrastructure development, with long-run relationship between infrastructure development and these socio-economic variables. The study concluded that infrastructure development in Nigeria can sustain growth with its attendant benefits and indices. The study recommended increased public capital expenditure budgetary provision on social and economic infrastructures in order for the building and construction economy sector to play its roles in the process of economic growth and development in Nigeria.