Abstract
M.Tech. (Civil Engineering)
Power infrastructure development is the bedrock of any country’s socio-economic development. Financing of power infrastructure has brought improvements in the living standards in society. Countries that seek to be industrialised and develop economically must first identify with how to finance its power infrastructure. This study seeks to determine the current sources of financing power infrastructure, the effective ways to finance power infrastructure, the challenges facing the financing of power infrastructure, the effects of legislation policies in the financing of power infrastructure and finally, the role of power infrastructure development in the economic growth of Nigeria.
The data used in this study were obtained from both reviewed literature and questionnaire data. The secondary data were collected through comprehensive reviews of related studies. The primary data were collected through a structured questionnaire from professionals in the Nigeria power sector who are responsible for financing power infrastructure. One hundred and thirty-two (132) questionnaires were received from the one hundred and fifty (150) questionnaires distributed to respondents, representing a response rate of 88 per cent. Findings from the study were analyzed using descriptive statistics and exploratory factor analysis (EFA). The report from the descriptive analysis of the current sources of financing power infrastructure revealed commercial bank loans as the top choice of the respondents, followed by public finance, private finance, and power utility fees. Furthermore, the findings for the effective ways to finance power infrastructure revealed public-private partnership as most favoured by respondents, followed by private finance, development banks, foreign direct investment, international financial institutions, the African Development Bank, pension funds and green bonds. In addition, the findings relating to the challenges facing the financing of power infrastructure in Nigeria revealed foreign exchange and currency differences as the most important variables according to the respondents; followed by limited access to loans and other forms of financing, lack of affordable long-term funding, lack of quick returns on investments, the time profile of cash flow by financial institutions in financing power infrastructure, higher risk of power infrastructure investments, and low tariffs of electrification in Nigeria. Likewise, the findings from the effects of legislation policies on financing of power infrastructure revealed the following: The respondents revealed policy instability was the most important effect, followed by completion uncertainties, cost uncertainties, reduction of corrupt practices in the power sector, increases in investors’ confidence, improvement of rural electrification development through effective legislation, a viable long-term policy framework to sustain...