Nigeria seeks global investment to unlock capital market for infrastructure growth

The Federal Government of Nigeria is intensifying efforts to attract global investment by leveraging the capital market to fund infrastructure development through Public-Private Partnerships (PPPs). In a strategic move, the government has engaged with the International Finance Corporation (IFC), a member of the World Bank Group, to explore policy frameworks that will enhance funding options for critical projects.

The Infrastructure Concession Regulatory Commission (ICRC) recently hosted a high-level delegation from the World Bank, marking a significant step toward unlocking the capital market’s potential for infrastructure financing. The visit, part of a broader fact-finding mission, sought to identify challenges, opportunities, and innovative financing mechanisms to drive investment into Nigeria’s infrastructure sector.

Speaking at the meeting, ICRC Director-General Dr. Jobson Ewalefoh emphasized that securing sustainable funding is at the core of Nigeria’s infrastructure agenda. He highlighted that unlocking capital market opportunities for PPPs is a key priority, particularly as the country seeks alternative financing models to bridge its infrastructure deficit.

“The World Bank and IFC were here to see what we can do in unlocking the potentials of the capital market in funding infrastructure development. We deliberated on the opportunities, the challenges and the importance of having access to the huge funds available in the capital market to fund infrastructure,” Ewalefoh stated.

He called on the World Bank to provide increased support for Nigerian government agencies in project development and capacity building, ensuring a steady pipeline of bankable projects that can attract investment.

Leading the World Bank delegation, Patricia Canziani introduced the bank’s Joint Capital Markets Programme (J-CAP), a global initiative designed to strengthen capital markets and improve funding access for infrastructure projects.

“The capital market holds many opportunities for funding PPP. The Nigerian capital market already has different products, but we can support the development of newer products in the country,” Canziani noted. She commended the ICRC for its role in regulating PPPs and encouraged collaboration with financial institutions and private sector players to build investor confidence.

Canziani also pointed out that several international investors are interested in Nigeria’s infrastructure sector but require improved market structures and risk mitigation measures.

The discussions underscored Nigeria’s commitment to positioning itself as a prime investment destination by streamlining PPP processes and enhancing transparency in capital market transactions. With the federal government’s renewed focus on infrastructure, the successful integration of capital market funding could significantly accelerate economic development.

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