Innovative Financing Strategies for Urban Transport Infrastructure: Evidence from Lagos, Nigeria

Abstract

This study investigates the impact of innovative financing strategies on urban transport infrastructure development in Lagos, Nigeria. The research specifically examined four financing dimensions: Public-Private Partnerships (PPPs), Infrastructure Bonds, Land Value Capture (LVC), and Multilateral/Development Bank Financing. Guided by Public Finance Theory, Institutional Theory, and Accessibility Theory, the study employed a quantitative approach using multiple regression analysis. A structured questionnaire was administered to a stratified sample of 220 respondents drawn from a population of 5,200 stakeholders, including officials from transport agencies, private investors, and transport professionals. The reliability of the instrument was confirmed with a Cronbach's alpha value above 0.7. Findings revealed that Infrastructure Bonds and Multilateral/Development Bank Financing significantly and positively influence urban transport development, particularly in improving accessibility and mobility. However, PPPs and LVC mechanisms showed no statistically significant effect, reflecting institutional and implementation challenges. The model summary indicated an R² of 0.327, suggesting that the four financing strategies jointly explain 32.7% of the variance in urban transport infrastructure outcomes. The study contributes to empirical knowledge by quantifying the relationship between financing strategies and urban transport outcomes, filling gaps in Nigerian transport finance literature which has remained largely descriptive. Recommendations include strengthening PPP frameworks, expanding the bond market, institutionalizing LVC mechanisms, and enhancing multilateral coordination. Limitations include reliance on stakeholder perceptions and a focus on a single state. Future studies should adopt longitudinal designs and explore other Nigerian cities to generalise findings. The research offers practical insights for policy-makers, investors, and urban planners.