Assessment of the Role of Development Finance Institutions in Infrastructure Financing in South East Nigeria

Development finance institutions occupy a strategic position in bridging the infrastructure financing gap in Nigeria, particularly in the South East geopolitical zone, where public infrastructure deficit constrains economic growth. This study assesses the role of development finance institutions, specifically the Bank of Industry, the Development Bank of Nigeria, and the Infrastructure Bank, in financing infrastructure projects in Anambra, Enugu, and Imo States. A qualitative and quantitative mixed-methods design was adopted. Secondary data were sourced from institutional annual reports and project disbursement records for the period 2017 to 2022, while primary data were collected through interviews with 20 project finance officers and 120 infrastructure beneficiaries. Infrastructure financing was assessed by disbursement volume, project completion rate, and employment multiplier effects. Descriptive statistics and thematic analysis were employed. Results indicated that the Bank of Industry accounted for 68% of total development finance institution disbursements in the South East over the study period. However, project completion rates averaged only 61%, with bureaucratic delays and counterpart funding shortfalls identified as primary constraints. Employment multiplier effects were highest in road and power infrastructure projects. The study concludes that development finance institutions are important but insufficiently coordinated in the South East zone. Cross-institutional co-financing frameworks and streamlined appraisal processes are recommended to improve infrastructure project completion rates.

Keywords: development finance institutions, infrastructure financing, South East Nigeria, Bank of Industry, project completion