DEVELOPMENT FINANCE INSTITUTIONS AND NIGERIA’S SOCIO-ECONOMIC INFRASTRUCTURE: EMPIRICAL EVIDENCE FROM COMMUNITY-INPUT APPROACH

Abstract

Financing socio-economic infrastructure is key to the economic viability of developing states, including Nigeria. However, a critical gap exists in the relegation of the community-input approach as a catalytic model for driving project funding. This study therefore examined the usefulness of community involvement in infrastructure funding in Nigeria. It utilized a survey research design to collect data from a sampled population in the South-East region using a questionnaire instrument. Hypotheses were tested at the 0.05 level of significance using the Chi-square (χ²) statistical technique. Anchored on Systems Theory, the study revealed that while communities in the geo-political zone are willing to partner in socio-economic infrastructure development, community input is largely absent in socio-economic funding by Development Finance Institutions (DFIs). The study therefore recommended the adoption of a community-based model as a top priority by key DFIs, such as the Bank of Industry, toward revitalizing the grassroots economy for maximum contribution to the country’s socio-economic development. It also recommended an amendment of the Act establishing Development Finance Institutions in Nigeria to accommodate the community-input model through active collaboration with the National Assembly. Furthermore, the study advocated the introduction of a Community–Public Partnership (CPP) initiative that allocates equity shares to communities for the funding of socio-economic infrastructure.