The Nigerian government is currently in discussions with the International Finance Corporation (IFC), a member of the World Bank Group, to explore ways of using the capital market and other funding sources to finance infrastructure projects through Public-Private Partnerships (PPPs).
This discussion was the main focus of a meeting between Nigeria’s Infrastructure Concession Regulatory Commission (ICRC) and a delegation from the World Bank. The World Bank team visited Nigeria on a fact-finding mission to assess the country’s capital market and identify how it can be leveraged for infrastructure development.
According to a statement released by Ifeanyi Nwoko, the Acting Head of Media and Publicity at ICRC, the meeting was held in Abuja on Sunday.
Unlocking the Capital Market for Infrastructure Projects
Speaking during the meeting, ICRC’s Director-General, Dr. Jobson Ewalefoh, emphasized that the visit by the World Bank team was crucial in shaping the future of infrastructure financing in Nigeria. He noted that Nigeria must explore alternative sources of funding, such as the capital market, to support its infrastructure projects under the PPP model.
After the technical meeting, Dr. Ewalefoh explained that securing adequate funding is one of the biggest challenges in infrastructure development. He highlighted that unlocking the capital market would be a major milestone in addressing this issue.
“The World Bank and IFC are here to explore how we can tap into the capital market to finance infrastructure projects. We discussed the available opportunities, the challenges, and the importance of accessing the significant funds available in the capital market,” Ewalefoh stated.
He further pointed out that Nigeria has many viable and bankable projects that could attract investors. However, there are risks that make some investors hesitant, such as concerns about the country’s business environment and a lack of sufficient information about investment opportunities.
Call for More Support from the World Bank
Dr. Ewalefoh urged the World Bank to do more in supporting Nigerian government agencies by providing funds and capacity-building initiatives. This, he said, would help create a stronger pipeline of infrastructure projects that meet global investment standards.
He assured that the ICRC would work harder to showcase Nigeria’s investment potential to global investors. He also stressed the importance of linking Nigeria’s capital market with its infrastructure needs to maximize investment opportunities.
Regarding the PPP process, he mentioned that the commission has been working in line with President Bola Ahmed Tinubu’s directive to accelerate the delivery of infrastructure projects through streamlined procedures.
World Bank’s Commitment to Strengthening Nigeria’s Capital Market
Speaking on behalf of the World Bank team, Patricia Canziani explained that the purpose of their visit was to introduce the Joint Capital Markets Programme (J-CAP) in Nigeria. The J-CAP initiative has been introduced in 20 countries worldwide and aims to strengthen capital markets by working closely with key stakeholders.
“Our goal is to collaborate with Nigerian stakeholders to identify ways to enhance the role of the capital market in financing infrastructure development. Nigeria’s capital market already offers various financial products, but there is room to develop newer and more innovative products,” she said.
She commended the ICRC for its role in regulating PPPs and encouraged the commission to continue working with other stakeholders to create new investment products and boost investor confidence.
Canziani also noted that there is significant interest from international investors who are looking for opportunities in Nigeria’s infrastructure sector. The World Bank and IFC’s visit to ICRC is part of a series of meetings they are holding with government agencies and private sector players to advance their mission.
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