Nigeria took a significant step toward deepening its domestic infrastructure finance market this week as InfraCredit backed a ₦32.5 billion, 20-year fixed-rate bond issued by Craneburg EKSG Motorway Company Plc—a vehicle established to develop a 68-kilometre ring road around Ado-Ekiti, the capital of Ekiti State.
The issuance, guaranteed under InfraCredit’s Annuity PPP Guarantee Product, marks the first successful corporate infrastructure bond for a subnational public-private partnership (PPP) project in Nigeria. The transaction sets a new benchmark for how state governments can tap domestic institutional capital to finance critical infrastructure, reduce fiscal pressure, and catalyze inclusive growth.
Structured under a Design, Build, Finance, Operate, Maintain, and Transfer (DBFOMT) concession, the project is being executed by Craneburg Construction Company Limited, one of Nigeria’s leading engineering and construction firms. It is a flagship component of Ekiti State’s Transportation Master Plan, designed to decongest urban traffic, improve regional connectivity, and open up new corridors for economic activity—particularly as the state prepares to operationalise a new cargo airport, agro-industrial zones, and tertiary institutions.
A New Model for State-Led Infrastructure Development
At the core of the financing is InfraCredit’s guarantee mechanism, which de-risks the project for institutional investors—primarily pension funds—by assuring them of repayment through an annuity model backed by the Ekiti State Government. This approach, in which the government retains traffic risk and makes regular availability payments to the concessionaire, provides predictability and lowers the cost of capital for long-term projects.
Chinua Azubike, CEO of InfraCredit, described the structure as “a blueprint for effective risk allocation” between the public and private sectors, enabling long-term domestic financing for essential infrastructure at the subnational level. “This model unlocks private capital in a fiscally responsible way, ensuring delivery and scalability for states seeking infrastructure transformation,” he said.
The bond achieved a ‘AAA’ rating from both Agusto & Co. and GCR Ratings—Nigeria’s highest credit rating—thanks to InfraCredit’s guarantee. It was fully subscribed by seven domestic pension funds and other institutional investors, reflecting growing appetite for long-tenor, high-quality infrastructure assets that match liability structures.
Local Capital, Long-Term Vision
In a statement, Mr. Femi Edun, Chairman of Craneburg Construction, credited the InfraCredit framework with enabling the mobilisation of domestic capital in a sustainable manner. “We are honoured to work with the Ekiti State Government on this transformative project. The structure is not only bankable but future-facing,” he said.
Hon. Akintunde Oyebode, Ekiti State’s Commissioner of Finance, called the project a “bold shift” in subnational financing. “The Ado-Ekiti Ring Road is more than just a transport corridor; it’s a catalyst for unlocking the full potential of our economic masterplan. By leveraging the private sector and de-risking the investment environment, we’re showing what’s possible for subnationals in Nigeria,” he said.
The initial phase of the project, funded through this bond issuance, will cover approximately 17.84km of the ring road, and includes tolling infrastructure and operational systems. The project is expected to create over 300 jobs during construction and operation, reduce travel time for commuters, and minimise accident risks tied to deteriorating infrastructure. It also aligns with key UN Sustainable Development Goals, including those related to economic growth, infrastructure, and sustainable cities.
Technical and Transactional Support
The project received early-stage support from KfW Development Bank through a technical assistance agreement with InfraCredit. This facilitated environmental studies, legal due diligence, and commercial feasibility assessments in partnership with the Ekiti State Development and Investment Promotion Agency (EKDIPA)—a process critical to ensuring transparent procurement and investor confidence.
On the capital markets side, Anchoria Advisory Services acted as Lead Issuing House and Bookrunner, while Coronation Merchant Bank and Greenwich Merchant Bank served as Joint Bookrunners for the transaction.
Broader Implications
The success of the Ekiti State ring road bond signals a maturing of Nigeria’s infrastructure finance ecosystem. As federal fiscal space narrows and donor funds wane, subnational governments are increasingly expected to innovate. InfraCredit’s annuity guarantee model provides a replicable roadmap for states seeking to convert infrastructure ambitions into investible opportunities.
Should similar frameworks be adopted across other states, the potential exists to unlock billions in domestic pension fund assets for infrastructure—driving employment, improving quality of life, and laying the foundation for more competitive subnational economies.
