The Role of Accounting Standards in Bridging the Financing Gap for Nigerian Infrastructure Development

This study investigates how accounting standard quality and financial reporting transparency can bridge the financing gap for infrastructure development in Nigeria. Nigeria faces a significant infrastructure deficit estimated at over 2.3 trillion US dollars over a 30-year horizon, with private financing constituting a critical gap in the funding mix. Investors and development finance institutions consistently cite weak financial reporting and governance transparency as key barriers to committing private capital to Nigerian infrastructure projects. This study adopts a qualitative case study design, examining five major infrastructure projects financed under public-private partnership frameworks in Lagos, Abuja, and Rivers State. Data sources include project financial statements, investor due diligence reports, and interviews with 40 infrastructure finance professionals, development bankers, and accountants. The study assesses how accounting standard compliance, particularly IFRS and public sector IPSAS requirements, influenced investor confidence and financing terms for each project. Results reveal that projects with higher accounting transparency and IFRS-compliant disclosures attracted financing at significantly lower risk premiums and shorter negotiation timelines. PPP concession accounting under IFRIC 12 was identified as an area requiring further local guidance. The study concludes that improving accounting standard adoption in infrastructure finance creates tangible financing cost advantages for the Nigerian government. It recommends that the Infrastructure Concession Regulatory Commission mandate IFRS-compliant financial reporting for all infrastructure SPVs above a minimum threshold.

Keywords: accounting standards, infrastructure finance, PPP, IFRIC 12, private investment.