Why Do Nigerian Infrastructure Contracts Cost So Much More Than Similar Projects Abroad?

Nigeria has a history of awarding infrastructure contracts at prices far above what other countries pay for similar work. For example, a Lagos railway upgrade was reportedly many times more expensive than a comparable project in Ethiopia. Another recent coastal road project from Lagos to Calabar and the Badagry–Sokoto highway, awarded without competitive bidding, also appears inflated compared to a similar road in Mumbai, India. These inflated costs force Nigeria to borrow heavily at high interest rates. It’s frustrating that public funds—now raised from broader industries, not just oil—are stretched by such pricing practices.

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