Emmanuel OchayiThe former Presidential candidate’s comments on the 26 of August 2022 regarding infrastructure’s limited role in economic growth have drawn a sharp rebuttal from Babatunde Raji Fashola, the former Minister of Works and Housing.
In an address, Fashola emphasized the role of infrastructure in Nigeria’s economic prosperity.
Join our WhatsApp Channel“Infrastructure cannot grow the economy…” This statement made by a Presidential candidate during the last election, drew criticism from Fashola. “There’s too much focus on Infrastructure, the economy is suffering,” the candidate had claimed.
However, Fashola highlighted that such perspectives were flawed and impractical, especially in developmental economics. He asserted, “Every economy seeking expansion, efficiency, and productivity must invest in commensurate infrastructure to achieve it.”
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Fashola outlined how critical infrastructure deficiencies, such as the lack of a local petroleum refinery, led to challenges for Nigeria’s economy.
He stressed that investing in infrastructure like refineries could reduce forex demand, ultimately strengthening the Naira and curbing inflation.
The former Minister underscored the multifaceted impact of infrastructure development, citing examples like road networks linking airports and seaports, vital for efficient trade and transportation of goods.
Fashola also emphasized the link between infrastructure, education, and healthcare, noting that investment in roads within tertiary educational institutions and healthcare facilities was crucial for their functioning.
Moreover, the former Lagos State governor highlighted untapped sectors like tourism, entertainment, and sports, which could flourish with the right infrastructure support.
He stressed that these areas held tremendous economic potential, awaiting the necessary infrastructure development.
In his comprehensive address, Fashola shed light on the economic activity generated by the construction industry, from employment creation to the extensive supply chain it triggers.
He detailed the enormous economic impact and employment opportunities generated by construction projects like roads, bridges, and housing units.
Fashola highlighted the direct and indirect benefits these projects bring to various sectors, driving demand for goods and services across micro, small, and medium-sized enterprises.
He further elaborated on the policy initiatives and funding mechanisms put in place to bolster infrastructure development, acknowledging the government’s efforts to mobilize capital through schemes like Sukuk and Tax Credit.
Drawing from political leaders’ speeches, including President Bola Tinubu’s commitment to infrastructure in his inaugural address, Fashola reiterated the government’s strong dedication to infrastructure development, ensuring a positive outlook for Nigeria’s construction industry in the coming years.
However, Fashola painted a promising picture for Nigeria’s construction sector, emphasizing its role in fostering economic growth, employment, and overall societal development.
Fashola’s comprehensive analysis offers a fresh perspective, highlighting the indispensable role of infrastructure in Nigeria’s economic trajectory, countering any notions that undermine its importance in fostering sustainable development.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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