StatiSense ® - Wale Micaiah ©

Nigeria Global

Competitive Index:

InfrastructureInfrastructureInfrastructureInfrastructure2006200620062006----2012201220122012

The World Economic Forum (WEF) Geneva,

Switzerland produces a yearly report to measure

countries and regions competitiveness among

Nations of the world using Global Competitiveness

Index (GCI)

This presentation focuses on Nigeria’s GCI rating

from 2006 – 2012 on the 2222ndndndnd PillarPillarPillarPillar:::: InfrastructureInfrastructureInfrastructureInfrastructure,

for the purpose of knowing how quality our

Infrastructure are over a period of 7years as this

would help know where more efforts need to be

applied in order to achieved better growth and

development.

2222ndndndnd PillarPillarPillarPillar: : : : InfrastructureInfrastructureInfrastructureInfrastructure

The 12 Pillars of GCIThe 12 Pillars of GCIThe 12 Pillars of GCIThe 12 Pillars of GCI� Institutions

�Infrastructure� Macroeconomic Environment

� Health and Primary Education

� Higher Education & Training

� Goods Market Efficiency

� Labor Market Efficiency

� Financial Market Development

� Technological Readiness

� Market Size

� Business Sophistication

� Innovation

BASIC

REQUIREMENTS

EFFICIENCY

ENHANCERS

INNOVATION &

SOPHISTICATION

FACTORS

Extensive and efficient Infrastructure is critical for ensuring the effective

functioning of the economy, as it is an important factor in determining the

location of economic activity and the kinds of activities or sectors that can

develop in a particular instance.

Well-developed infrastructure:� Reduces the effect of distance between regions,

� Integrates national markets,

� Connects at low cost markets in other countries and regions,

� Impacts economic growth,

� Reduces income inequalities and poverty in a variety of ways,

� Enables goods and services to market in a secure and timely manner,

� Facilitate the movement of workers to the most suitable jobs.

Economies also depend on electricity supplies that are free of interruptions

and shortages so that businesses and factories can work unimpeded. Finally,

a solid and extensive telecommunications network allows for a rapid and

free flow of information, which increases overall economic efficiency by

helping to ensure that businesses can communicate and decisions are made

by economic actors taking into account all available relevant information.

There were 9 indicators used in measuring the strength of Nigeria’s

Infrastructure:

� Quality of overall infrastructure� Quality of roads� Quality of railroad infrastructure� Quality of port infrastructure� Quality of air transport infrastructure� Available airline seat kms/week, millions� Quality of electricity supply� Mobile telephone subscriptions/100 pop.� Fixed telephone lines/100 pop.

Each indicator were ranked (based on the number of countries surveyed) and scoredfrom 1-7, 1 being the least.Except for Quality of railroad infrastructure which was measured in 2011 and 2012, allother indicators were measured from 2006 to 2012.

Nigeria Ranking & ScoresNigeria Ranking & ScoresNigeria Ranking & ScoresNigeria Ranking & Scores

Effort = 1 – C3/C2

Year Country Count Rank Score Effort

2006-2007 121 95 2.42 21.49%

2007-2008 131 119 2.20 9.16%

2008-2009 134 120 2.24 10.45%

2009-2010 133 127 2.29 4.51%

2010-2011 139 135 2.02 2.88%

2011-2012 142 135 2.21 4.93%

2012-2013 144 130 2.28 9.72%

Nigeria’s best effort was made in 2006 with a 21.49% performance,

ever since, there has been consistent deterioration in the rankings

as well as scores. However, between 2010 and 2012, some

measure of growth were experienced. As at today, Nigeria ranks

130th of 144 countries in terms of infrastructural development.

Scores, being measured from 1 – 7, with 1 being the worst performance and

7 the best, it is safe to assume that a minimum benchmark should be 3.5 so

as to focus on indicators which are below this value.

The following indicators reflects areas where attention are most need:

Indicators 2006 2007 2008 2009 2010 2011 2012

Infrastructure 2.42 2.20 2.24 2.29 2.02 2.21 2.28Quality of overall infrastructure 2.63 2.35 2.38 2.43 2.42 3.03 3.23

Quality of roads 2.41 2.21 2.32 2.55 2.39 2.72 2.77

Quality of railroad infrastructure 1.58 1.89

Quality of port infrastructure 3.05 2.69 2.62 2.80 2.98 3.31 3.55

Quality of air transport infrastructure 3.91 3.54 4.22 4.35 3.88 3.85 4.00

Quality of electricity supply 1.93 1.69 1.56 1.46 1.34 1.45 1.69

A closer look at the above shows a downward trend in

the score of Indicator: Quality of electricity supply, with

worst performance in both Quality of Electricity supply

and Quality of railroad infrastructure.

Amongst others, these three deserve urgent attention:

�Quality of roads ------- 114/144 (2012)

�Quality of railroad infrastructure ------- 95/144 (2012)

�Quality of electricity supply ----- ------- 138/144 (2012)

Several road accidents attest to the level of

deterioration in Nigeria roads. With a population

of over 160million, Nigeria produces less than

5,000MegaWatt of electricity!

Indicators 2006 2007 2008 2009 2010 2011 2012

Infrastructure 2.42 2.20 2.24 2.29 2.02 2.21 2.28

Quality of roads 2.41 2.21 2.32 2.55 2.39 2.72 2.77

Quality of railroad infrastructure 1.58 1.89

Quality of electricity supply 1.93 1.69 1.56 1.46 1.34 1.45 1.69

It is worth mentioning that the indicator: Quality of air transport

infrastructure, scores highest with 4.00 of 7.

In light of recent accidents, this achievement is contestable following

about 3 air mishaps in 2012 involving a commercial airline (Lagos)

where over 152 passengers lost their lives and 2 involving a Police

helicopter (Jos) and a Naval aircraft (Bayelsa).

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1 2 3 4 5 6 7

Quality of overall infrastructure

Quality of roads

Quality of railroad infrastructure

Quality of port infrastructure

Quality of air transport infrastructure

Quality of electricity supply

2.28

Average point

2012 score

Nigeria currently ranks 130th of 144

Nations in Infrastructural development, with

the quality of resources Nigeria is endowed

with, this is definitely an aberration.

If the Government and other Stakeholders

concentrates on improving the QualityQualityQualityQuality ofofofof

RoadsRoadsRoadsRoads, thethethethe QualityQualityQualityQuality ofofofof RailroadRailroadRailroadRailroad and thethethethe

SupplySupplySupplySupply ofofofof ElectricityElectricityElectricityElectricity, Nigeria would

experience some measurable developments

which would eventually lead to better

scores and ranking.

2008

20092010

2011

2012

2006

2007

1

2

3

4

5

6

7

Nigeria

Average

StatiSense ® - Wale Micaiah ©

Freely share, freely use and freely acknowledge the

source – © Wale Micaiah

Data source:

- The World Economic Forum https://www.weforum.org/

- The Global Competitiveness Index 2012-2013 data platform

Analysis by: WaleWaleWaleWale MicaiahMicaiahMicaiahMicaiah

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