The Federal Government has initiated discussions with the International Finance Corporation (IFC), a member of the World Bank Group, to explore new ways of using the capital market to finance infrastructure development. This move is part of an effort to boost funding through Public-Private Partnerships (PPP) instead of relying solely on traditional government sources.
The Infrastructure Concession Regulatory Commission (ICRC) recently hosted a fact-finding meeting with the World Bank team to discuss unlocking the potential of Nigeria’s capital market. According to a statement released by the Acting Head of Media and Publicity, Ifeanyi Nwoko, the discussions focused on policies that could attract private investment into infrastructure projects.
ICRC Pushes for Capital Market Investment
ICRC Director General, Dr. Jobson Ewalefoh, emphasized the importance of alternative financing methods, particularly leveraging the capital market to fund PPP projects. He highlighted that infrastructure development in Nigeria is being hindered by financial constraints and that accessing the vast funds available in the capital market would be a game-changer.
“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 acknowledged that while Nigeria presents viable and bankable investment opportunities, investors remain cautious due to risks and a lack of adequate information about available prospects.
World Bank’s Commitment to Nigeria’s Capital Market
The World Bank’s delegation, led by Patricia Canziani, stated that their visit aimed to introduce the Joint Capital Markets Programme (J-CAP) in Nigeria, a project already implemented in 20 countries. She noted that Nigeria’s capital market holds significant potential for PPP funding and that the bank is willing to support the development of new financial products to attract investors.
“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,” she said.
Canziani commended the ICRC for regulating PPPs and urged further collaboration to improve investor confidence. She also noted that international investors have shown interest in Nigeria, but many opportunities remain untapped due to regulatory and market challenges.
The World Bank and IFC’s visit to ICRC is part of a series of meetings with key government and private sector stakeholders aimed at enhancing Nigeria’s investment climate.
