Nigeria Explores Capital Market Funding for Infrastructure with World Bank/IFC
By Patience Ikpeme
The Nigerian government has initiated discussions with the International Finance Corporation (IFC), a member of the World Bank Group, to explore leveraging the capital market and other domestic funding options for infrastructure development through Public Private Partnerships (PPPs).
This initiative was the focus of a recent meeting between the Infrastructure Concession Regulatory Commission (ICRC) and a World Bank team on a fact-finding mission to assess Nigeria’s capital market potential.
Dr. Jobson Oseodion Ewalefoh, Director General of the ICRC, emphasized the importance of the visit, stating that it could “redefine the space of infrastructure development in Nigeria.” He highlighted that alternative financing, including unlocking the capital market to fund PPPs, is central to his innovative financing policy agenda.
“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,” Ewalefoh explained. “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 stressed the potential for investors to invest in Nigeria, based on the viability and bankability of projects. He acknowledged that while project viability isn’t a primary concern, other risks and a lack of information about investment opportunities in Nigeria are deterring investors.
He urged the World Bank to increase its support for Nigerian government agencies through funding and capacity building, enabling them to develop more eligible project pipelines. The ICRC, he affirmed, will enhance its communication efforts to showcase Nigeria’s investment potential, highlighting the crucial link between these opportunities and the role of the capital market.
Ewalefoh also noted that the ICRC has streamlined its PPP processes in line with President Bola Ahmed Tinubu’s directive to accelerate the delivery of PPP infrastructure projects.
Ms. Patricia Canziani, leader of the World Bank delegation, explained that the visit aimed to introduce the Joint Capital Markets Programme (J-CAP), which has been implemented in 20 countries globally. “The purpose of our visit is to introduce the J-CAP program…and identify ways to support the development and roles of the capital market in Nigeria,” she said.
Canziani highlighted the numerous opportunities within the capital market for funding PPPs. “The Nigerian capital market already has different products, but we can support the development of newer products,” she stated.
She commended the ICRC’s regulatory role in PPPs and encouraged collaboration with other stakeholders to develop new financial products and build investor confidence. Canziani also noted the “untapped interest” from potential international investors.
The World Bank/IFC’s visit to the ICRC is part of a series of meetings with key government and private sector stakeholders, demonstrating their commitment to facilitating infrastructure development through capital market mobilization in Nigeria.
