Project Case Study
Transforming Nigeria's Infrastructure Landscape
NIAF2's Impact on Power, Water, and Urban Development in Nigeria
Nigeria is Africa’s largest economy, its most populous nation and the biggest oil exporter on the continent. Following strong GDP growth, driven mostly by high global oil prices, the economy is expected to slow as the value of exports drops. Despite this strong economic growth, however, Nigeria faces important socio-economic challenges, including large and growing income inequality. Successive Nigerian governments have proclaimed a goal of economic diversification away from reliance on oil exports to sustain growth and reduce poverty.
Poor infrastructure is a major constraint to economic growth and poverty reduction in Nigeria. Inadequate power supply, poor road maintenance, inadequate transport planning and uncoordinated urban development are a major impediment to growth and a barrier to effective and equitable economic development in Nigeria. It was in this context that ASI delivered the Nigeria Infrastructure Advisory Facility 2 (NIAF2), a demand-led facility providing advisory services across the energy, roads, transport, and urban development sectors.
NIAF2 aimed to enhance infrastructure development in Nigeria by providing flexible, demand-driven technical assistance at federal and state levels. Its delivery model emphasised demand-led interventions, flexibility to adapt to opportunities, scalability based on feedback, and a risk-bearing approach targeting transformational change. Key areas of focus included energy, where NIAF2 supported ambitious power reforms and established a sustainable tariff system; urban development, aiding policy and planning in major cities; transport, managing significant capital projects and developing a Road Asset Management System; and rural roads, addressing critical infrastructure needs. Additionally, NIAF2 advanced ICT governance and infrastructure reforms, fostering a conducive environment for private sector participation and improved transparency.
- NIAF2 earned an A+ output score, achieving A++ in three years. It transformed Africa’s largest power reform, benefiting 75 million Nigerians.
- NIAF2 attracted over £5.6bn in investments, enhanced water management for 276,000 people, improved rural road access, and supported a £4bn PPP pipeline, boosting Lagos with £2.5bn in investments.
