1 week ago
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The Federal Government is collaborating with the International Finance Corporation (IFC), a member of the World Bank Group, to explore capital market options for funding infrastructure projects through Public-Private Partnerships (PPPs).
The initiative was at the centre of a recent fact-finding meeting between the Infrastructure Concession Regulatory Commission (ICRC) and a World Bank delegation, where discussions focused on unlocking the capital market’s potential to fund Nigeria’s pressing infrastructure needs.
Dr Jobson Oseodion Ewalefoh, Director General of the ICRC, described the visit as pivotal, stating that alternative financing mechanisms were essential for his policy agenda.
“The World Bank and IFC were here to see what we can do in unlocking the potential of the capital market for infrastructure development,” he noted.
He emphasised that financial constraints remained a major challenge in infrastructure development, making capital market engagement a strategic necessity.
“We deliberated on opportunities, challenges, and the importance of accessing the vast funds available in the capital market,” Ewalefoh said.
Addressing investor concerns, the ICRC chief noted that while project viability was not in question, risks such as regulatory uncertainty and a lack of information had deterred investment.
“At the end of the day, we agreed that viability is not a problem, but investors remain wary due to certain risks and insufficient information about Nigeria’s investment potential,” he added.
Ewalefoh urged the World Bank to provide stronger support in terms of funding and capacity-building for Nigerian government agencies to develop a robust pipeline of eligible infrastructure projects.
He assured that the ICRC was committed to accelerating PPP processes, aligning with President Bola Ahmed Tinubu’s mandate to fast-track infrastructure delivery.
The World Bank’s delegation was led by Ms Patricia Canziani, who highlighted the bank’s intent to introduce its Joint Capital Markets Programme (J-CAP) in Nigeria.
“The purpose of our visit is to introduce the J-CAP programme, which has already been implemented in 20 countries worldwide. The programme seeks to collaborate with stakeholders in Nigeria to identify ways to strengthen and expand the role of the capital market in financing infrastructure,” Canziani explained.
She pointed out that while Nigeria’s capital market already offers various investment products, there was room for innovation.
“The Capital Market holds many opportunities for funding PPPs. Nigeria has existing products, but we can support the development of newer financial instruments,” she said.
Canziani commended the ICRC’s regulatory efforts and encouraged continued collaboration with other stakeholders to enhance investor confidence.
“There are a number of untapped interests from potential international investors,” she remarked, urging Nigeria to strengthen its communication strategies to attract foreign capital.
The World Bank’s engagement with the ICRC is part of a series of high-level meetings with strategic government and private sector stakeholders to foster sustainable investment solutions for Nigeria’s infrastructure needs.
The discussions signal a significant step towards leveraging private-sector funds to address the country’s infrastructure deficit through a reinvigorated PPP framework.
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