Authors : Dan Alphaeus Adejoh

Volume/Issue : Volume 11 - 2026, Issue 5 - May

Google Scholar : https://tinyurl.com/3u28ex9s

Scribd : https://tinyurl.com/5f5yhwb5

DOI : https://doi.org/10.38124/ijisrt/26May954

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : Nigeria finds itself in a deficit quagmire, to say the least. Its road infrastructure has almost 80% of its estimated 200,000Km road network in deplorable condition. This indicates a major problem given the country’s already rising public debt burden of $99.66 billion and a crippling debt-service-to-revenue ratio of 144% as of 2025. Its strategy of harnessing traditional financing methods and its overbearing reliance on public debt financing have not only proved unsustainable, but have added new levels of unimaginable fiscal pressure, hindering investments in capital projects at almost all levels of governance. To bridge the infrastructural gap Nigeria finds itself in, this study will examine other financing mechanisms the country can employ while promoting debt sustainability between 2015 and 2025. These alternatives are Public-Private Partnership (PPPs), Diaspora Bonds, and Toll Financing as better options for tackling this problem. This study adopts the mixed-method approach and analyses institutional frameworks, government policy documents, and secondary data obtained from the Debt Management Office, Central Bank of Nigeria, and published materials from the World Bank. General findings indicate that these three alternative financing mechanisms provide a better option for funding road infrastructure, reducing government reliance on sovereign borrowings. PPPs can mobilize private capital and help share risk, lifting the burden. Diaspora bond grants access to stable capital with lower borrowing costs while toll financing provides a dedicated revenue stream and reduces fiscal pressure. The study also indicates that surmountable challenges exist, such as the high level of insecurity and policy inconsistency, which can hinder full implementation. In conclusion, the study suggests that the three alternative finance mechanisms are the best option in addressing the country’s reliance on public debt. It indicates that by employing a blended framework of PPPs, diaspora bonds, and toll financing, Nigeria will be correctly positioned to achieve long-term road infrastructure development. Included are recommendations for policymakers, investors, and development partners with a broader applicability to other economies facing similar challenges.

Keywords : Public-Private Partnership (PPPs), Diaspora Bond, Toll Financing, Road Infrastructure, Public Debt, Alternative Financing.

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