Manufacturers'responses to infrastructure deficiencies in Nigeria : private alternatives and policy options

As cities in developing countries grow, the need to meet increasing demand for urban infrastructure services has become an important policy problem. Failure to respond adequately affects productivity and the quality of life in those cities. In order to make the Bank's lending programs in this area more effective, greater understanding is needed of: (a) the ways inadequate services affect business and productivity in urban areas; (b) the options for more efficiently providing and maintaining the delivery of various infrastructure services; and (c) potential cost savings from improved services. Based on empirical observations, this report suggests policy options for improving the provision of infrastructure services in Nigeria, the first country for which the Bank has undertaken this type of research: (a) regulatory changes to enable greater use of existing private capacity (for example, allowing the sale of excess private electrical power); (b) participation of the private sector in the supply of infrastructure-related services; and (c) pricing policies that are more efficient in the presence of congestion, system failures, and variations in the private provision of services.