Nigeria, a country grappling with economic challenges such as high inflation, decaying infrastructure, and increasing unemployment, is in dire need of reform [26a6fd9a]. The present government has been unable to effectively address these issues, resulting in a decline in economic activities and a depreciation of the Naira. To overcome this economic depression, concrete policy options are recommended, including transitioning to a production economy driven by technology, upscaling investment in the solid minerals sector, and improving agricultural productivity [26a6fd9a].
However, one of the major obstacles to Nigeria's economic development is the critical infrastructure gaps that hinder economic growth [4d0c6fd3]. A report by Nanyang Technology University's Centre for African Studies highlights the urgent need for significant investment in ports, power, roads, and information and communication technology (ICT) to address these deficiencies [4d0c6fd3].
Inadequate infrastructure has severe consequences for Nigeria's economy. It leads to agricultural produce loss, traffic congestion, idle ports, and frequent power cuts. Small and medium-sized businesses (SMEs) and households struggle to access stable power, often relying on expensive petrol generators. The lack of reliable power supply costs the Nigerian economy $28 billion annually and makes the country less competitive [4d0c6fd3].
Furthermore, Nigeria's transport infrastructure is also in dire need of improvement. The country has one of the least connected road networks globally, resulting in increased business costs and inefficiencies in the transportation of goods. The administrative bureaucracy and high operational costs faced by the country's ports further compound these challenges [4d0c6fd3].
To build a sustainable future, Nigeria must prioritize infrastructure development. Significant investment in ports, power, roads, and ICT is crucial to support economic growth. By addressing these critical infrastructure gaps, Nigeria can attract foreign investments, create jobs, and improve the quality of life for its citizens. Additionally, improving infrastructure will enhance the country's competitiveness and position it as a leader in Sub-Saharan Africa [4d0c6fd3].
It is evident that Nigeria's economic growth is hampered by critical infrastructure gaps. The government must take immediate action to address these deficiencies and create an environment that fosters economic development. By investing in infrastructure, Nigeria can pave the way for a sustainable and prosperous future, benefiting both its economy and its people [4d0c6fd3].
In addition to infrastructure challenges, Nigeria also faces significant obstacles in its last-mile delivery system. The last-mile delivery system in Nigeria needs improvement due to infrastructure deficiencies, technological barriers, logistical fragmentation, and economic challenges [44b8d01e]. Inadequate infrastructure, especially in rural areas, hinders efficient delivery, while technological barriers limit the adoption of tools like GPS tracking and route optimization software. Logistical fragmentation, with a mix of formal and informal providers, leads to inconsistent delivery standards. Economic challenges such as fluctuating fuel prices and high logistics costs affect the cost of last-mile delivery [44b8d01e].
To overcome these challenges, Nigeria has opportunities for improvement. These include integrating advanced technology, building capacity, fostering collaborative models, leveraging data analytics, investing in infrastructure, and tapping into local knowledge. By working together, Nigeria can overcome these challenges and set a new standard for last-mile delivery in the region [44b8d01e].
Furthermore, governance issues also contribute to Nigeria's development challenges. Corruption, poor governance, and socio-economic disparities hinder the country's progress. Establishing and maintaining a robust legal framework, functioning judiciary, and funding law enforcement agencies are essential. Promoting legal literacy and awareness among citizens is a long-term investment. Strong institutions, advanced industrialization, infrastructure development, prioritizing education and healthcare, technological advancements, access to basic services, political stability, effective governance, and addressing poverty and inequality are key factors for a country that works for all. The government's commitment to ongoing reforms, effective policies, and public engagement is crucial for achieving meaningful and sustainable progress [7ff05a38].
Africa, as a whole, is facing challenges in its digital infrastructure, hindering its economic growth and development. A new report titled 'Digital Economy Foresight Africa 2024' highlights that African countries are lagging behind G20 nations in digital infrastructure [f08ebb7e]. The report emphasizes the need for African economies to invest in an inclusive digital economy to seize opportunities. However, significant gaps in infrastructure, technology, and skills pose a risk of falling further behind. To bridge the gap, policymakers should prioritize fixed broadband expansion, address affordability, and increase access to digital infrastructure. The report suggests three key areas for policymakers to prioritize: improving access to digital infrastructure and platforms, developing digital skills, and promoting digital financial inclusion [f08ebb7e].
According to a report by the Groupe Special Mobile Association (GSMA), about 71% of Nigerians do not have regular access to mobile internet [d2538164]. The report highlights industry challenges that limit telecom coverage expansion, including complex and costly processes for securing rights of way, a complex tax environment, and increasing costs. Nigeria could add 15 million internet users by 2028 with the right policy in place. The report recommends establishing a legal framework for critical national infrastructure, streamlining rights-of-way issuance, reducing tax burdens, and fostering a conducive regulatory climate to spur sustainable investment [d2538164].
Millions of schoolchildren in Nigeria lack access to reliable electricity, hindering their education. Businesses and public services are also affected by the lack of electricity. The issue is particularly acute in Olodo Okin in Ibadan, where the entire community, including the school, is not connected to the national electricity grid. This means that students cannot learn how to use computers or the internet, and they are unable to study in the evenings. The lack of electricity is straining businesses and public services across Nigeria [5b8f9c74].
To address the electricity poverty in Nigeria, there is a need for improved access to reliable electricity. This would not only benefit schoolchildren by enhancing their education but also support businesses and public services. The government and policymakers should prioritize investments in the electricity sector, including expanding the national electricity grid and exploring alternative energy sources such as solar power. By ensuring reliable electricity supply, Nigeria can unlock its economic potential and improve the quality of life for its citizens [5b8f9c74] [4d0c6fd3].
Meanwhile, in Cuba, the ongoing energy crisis is severely impacting the country's nascent private sector. Since 2021, more than 10,000 small businesses have been authorized and now face significant challenges. Blackouts have intensified since May, affecting up to 40% of the country simultaneously on some days. President Miguel DÃaz-Canel has acknowledged power cuts of up to 20 hours daily in certain areas. The energy crisis is one of the factors dragging down the national economy, which contracted between 1% and 2% last year and remains below 2019 levels [a11bd616].
Cuba's sugar cane industry is also facing a severe economic crisis marked by frequent power blackouts and shortages of fuel, fertilizer, and pesticides. Output has fallen from 84 to 28 tons of cane per hectare in the past five years due to obstacles such as zero fertilizer, zero herbicide, fuel shortages, and power blackouts. The number of sugar mills in Cuba has dropped from 156 to 56, and the 2022-2023 harvest barely reached 350,000 tonnes, only 4.4% of what the country produced until the early 1990s [95e05d5c].
Cuba's economic crisis, worsened by the pandemic, has led to a fresh wave of power blackouts and a lack of fuel and equipment for repairs. The sugar cane industry is struggling with hardship and uncertainty, with limited resources and equipment to work with. The industry's decline has significant implications for Cuba's economy, as sugar exports have historically been a major source of revenue for the country. The government must address the fuel shortages and provide support to the sugar cane industry to ensure its survival and contribute to the country's economic recovery [95e05d5c] [a11bd616].