KENNA Colloquium: Charting a path to infrastructure transformation in Enugu

The recent KENNA Colloquium in Enugu State on Thursday, June 5, 2025, brought together key stakeholders to tackle Nigeria’s pressing infrastructure deficit. Themed “Support Mechanisms for Infrastructure Development and Financing,” the event emphasized the urgent need for innovative funding models and collaborative strategies to accelerate socio-economic progress, not just in Enugu but across the nation.

Enugu State’s Deputy Governor, Ifeanyi Ossai, underscored the government’s dedication to fostering an environment conducive to investment. Representing Governor Peter Mbah, Ossai highlighted a strategic shift: “While taxation is a source of raising funds for infrastructural projects, there is a limit to how much we can tax. Therefore, we are creating an enabling environment to encourage businesses to invest—not just in infrastructure development, but in different sectors—to create wealth for the entire state.” He pointed to significant state investments in education and healthcare, aiming to reduce household financial burdens and stimulate business growth, particularly for MSMEs.

Additionally, Professor Fabian Ajogwu, SAN, Senior Partner at KENNA, stressed the importance of fortifying Enugu’s legal and regulatory framework for infrastructure development. A robust framework, he reasoned, would ensure stability, transparency, and investor confidence. Professor Ajogwu proposed the establishment of an independently managed “Enugu State Infrastructure Fund” with clear governance structures. This fund, he explained, would offer a more predictable financing avenue than traditional borrowing or federal allocations, granting the state greater autonomy in resource utilization. He also advocated for diversifying financing options to include Public-Private Partnerships (PPPs), state-issued infrastructure bonds, blended finance, and green finance for sustainable projects.

While the Enugu State Government allocated ₦20 billion to security and infrastructure in 2024, the scale of Nigeria’s infrastructure needs is staggering. The Nigerian Institution of Highway and Transportation Engineers estimates a national deficit requiring approximately $3 trillion USD. This stark reality formed the backdrop for a panel discussion at the colloquium, which delved into the root causes of the current infrastructure gap and explored pragmatic solutions.

Chiaka Mbagwu, Regional Manager at a leading Nigerian bank, shed light on the limitations faced by financial institutions in funding large-scale infrastructure projects. Mbagwu emphasized that “Financial institutions can only fund projects sustainably if they are sufficiently capitalized, particularly in light of the long-term nature of infrastructural projects.” Mbagwu also called for effective regulations and thorough feasibility studies by professional bodies, including robust risk assessments.

Okechukwu Ekweanya, Partner at KENNA and Head of the firm’s Infrastructure and Development Practice, offered crucial advice on mitigating project-prolonging conflicts. He recommended incorporating multi-tiered dispute resolution mechanisms into contracts: “The first stage will typically be negotiation between the parties; where that fails, the second will be expert resolution, followed ultimately by arbitration.” This layered approach aims to limit litigation risks and ensure smoother project execution.

Representing the Attorney General’s office, Uzoamaka Okeji, Director at the Office of the AG, highlighted Enugu State’s proactive reforms. Okeji cited the Enugu State Property Protection Law, designed to safeguard both private investors and the government, and the Enugu State Electricity Bill, which liberalizes the electricity market for private sector participation. Additionally, the establishment of the Enugu State Geographic Information Service streamlines land title checks, acquisitions, and registrations.

Dr. Ibenaku Onoh, Chairman of Enugu North Local Government, emphasized the critical role of local governments and addressed the pervasive issue of poor maintenance culture. His proposed solution involves embedding a “build, maintain, and transfer” mechanism into contracts, mandating developers to maintain projects for a period while transferring knowledge to local personnel. He also advocated for legislation that allocates specific funds to local governments for project maintenance, preventing the swift erosion of infrastructure gains.

The colloquium, moderated by KENNA Partner Nimma Jo-Madugu, drew a distinguished audience, including Enugu State Chief Judge Justice Raymond Afojulu Ozoemena, past and present government officials, legal luminaries, academics, and business leaders, all united in the pursuit of sustainable infrastructure development for Nigeria.