Infrastructural development is characteristically multifaceted, but studies tend to be focused on limited context which has shed more light on structural issues at the cost of increased ambiguity as regards institutional factors that influence infrastructural development. Combining institutional theory and institutional analysis and development framework (IADF), this research studies how institutional factors influence infrastructural development. In particular, it explores three questions: what are the main differences that exist in policymaking processes? How do stakeholders interact in infrastructural development in Nigeria? How can institutions enhance infrastructural development? The findings show that institutional arrangements and legitimacy pressures are the main reasons for organizational passivity which produce under-performing infrastructures. Initially, mimetic pressures influenced infrastructural development practices as companies imitated other company's structures that were perceived to be beneficial to attain certain goals. However, coercive pressures by government and normative pressures wielded through professional network of actors appear to be more potent institutional instruments for reducing unresponsiveness. We concluded that favourable institutional pressures support infrastructural development practices, which indicates the need for more structured decision-making process based on collective participation of relevant stakeholders.