The Federal Government of Nigeria is currently in discussions with the International Finance Corporation (IFC), a member of the World Bank Group, to explore capital market and funding options for infrastructure development through Public-Private Partnerships (PPP).
This was disclosed in a statement issued by Ifeanyi Nwoko, the Acting Head of Media and Publicity at the Infrastructure Concession Regulatory Commission (ICRC), on Sunday in Abuja.
The meeting between the ICRC and the IFC focused on developing and unlocking Nigeria’s capital market.
Dr. Jobson Ewalefoh, the Director-General of ICRC, emphasized the significance of the World Bank team’s visit, stating that it could redefine the landscape of infrastructure development in Nigeria. He highlighted that alternative finance options, such as unlocking the capital market to fund PPPs, are central to his innovative financing policy agenda.
Unlocking the capital market
Following a technical meeting, Ewalefoh stated that funding is crucial for infrastructure development, and unlocking the capital market would be a significant milestone.
“The World Bank and IFC were here to see what we can do in unlocking the potential of the capital market in funding infrastructure development. We deliberated on the opportunities, challenges, and the importance of accessing the huge funds available in the capital market for infrastructure. In my deliberation, I focused on the potential for investors to invest in Nigeria based on the viability and bankability of projects. At the end of the day, we agreed that viability is not a problem, but there are other risks that investors are wary of,” Ewalefoh said.
- Ewalefoh also pointed out the lack of information about the investment opportunities in Nigeria and urged the World Bank to increase support for Nigerian government agencies by providing funds and capacity development to generate more eligible project pipelines. He stressed that the ICRC would enhance communication about Nigeria’s investment potential.
- The Director-General highlighted the nexus between investment opportunities in Nigeria and the role the capital market could play in tapping into that potential. He added that the commission had streamlined its PPP processes to ensure the accelerated delivery of infrastructure projects.
Ms. Patricia Canziani, leader of the World Bank delegation, stated, “The essence of the meeting is to gather information that would enable the bank to introduce its Joint Capital Markets Programme (J-CAP) in Nigeria, which we have introduced to 20 countries worldwide.”
She explained that the program aims to work with stakeholders in Nigeria to support the development and roles of the capital market. “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,” Canziani added.
What you should know
She commended the ICRC for its role in regulating PPPs and urged collaboration with other players to develop new products and build investor confidence.
- Nwoko noted that the World Bank IFC’s visit to ICRC was part of a series of meetings with strategic government and private stakeholders relevant to its mission.
- Recently, the Securities and Exchange Commission (SEC) stated that adopting blockchain technology will enhance efficiency and aid the regulation of Nigeria’s capital market.
- Dr. Emomotimi Agama, the Director-General of SEC, made this known during a meeting with a delegation from the Algorand Foundation at the Commission’s headquarters in Abuja.
He noted blockchain’s potential to address key challenges in Africa, such as financial exclusion, lack of transparency, and inefficiencies in both public and private sectors. Dr. Agama emphasized that leveraging this digital ledger technology would enable the SEC to build a more transparent and efficient regulatory framework for the capital market.