The Economics of Road Infrastructure Decay and Business Competitiveness in Awka Metropolis

Road infrastructure serves as a foundational input into business logistics, production costs, and market access, and its deterioration imposes measurable economic costs on enterprise competitiveness. This study examines the economic impact of road infrastructure decay on business competitiveness in Awka metropolis, Anambra State, with focus on data from 2021 to 2024. The study is grounded in the Infrastructure-Growth Nexus Theory, which posits that the quality and coverage of physical infrastructure directly influence business productivity, transaction costs, and regional economic competitiveness. A cross-sectional survey research design was adopted, targeting business enterprises of varying scales operating in Awka. From an estimated population of 8,500 registered businesses, a sample of 368 respondents was drawn using stratified random sampling. Structured questionnaires and business logistics cost records constituted the data instruments. Findings reveal that businesses in areas with severely degraded roads reported logistics cost increases averaging 47 percent above normal, translating directly into higher product prices and reduced profit margins. Over 55 percent of respondents reported loss of customers to competitors located in better-served areas. The study concludes that road infrastructure decay is a material constraint on business competitiveness in Awka metropolis. It is recommended that Anambra State government prioritize road rehabilitation expenditure in its capital budget and explore public-private partnership frameworks for the maintenance of key commercial corridors within Awka.

Keywords: Road infrastructure, business competitiveness, logistics costs, Awka, infrastructure-growth nexus