FG, World Bank explore capital market option to fund infrastructure

The federal government says it is discussing with the International Finance Corporation (IFC) to explore Nigeria’s capital market and funding options for infrastructure development through public-private partnerships (PPP).
A statement by Ifeanyi Nwoko, the Infrastructure Concession Regulatory Commission (ICRC) spokesperson, on Sunday in Abuja, said this was the focus of a meeting between the ICRC and the IFC- a member of the World Bank Group.
Mr Nwoko said the World Bank team was on a fact-finding mission on how to develop and unlock the capital market in Nigeria.
Jobson Ewalefoh, the director-general (DG) of ICRC, was quoted as saying, “The visit of the team is an important one that could redefine the space of infrastructure development in Nigeria.”
Mr Ewalefoh said alternative finance options like unlocking the capital market to fund PPPs were at the heart of his innovative financing policy agenda.
While speaking after the technical meeting, the DG said funding was at the core of infrastructure development; hence, it would be a milestone in unlocking the capital market.
“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, the challenges and the importance of having access to the huge funds available in the capital market to fund infrastructure.
“In my deliberation, I focused more 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 were weary of,” Mr Ewalefoh said.
He also said there was a lack of information about the opportunities that abound in Nigeria as a key investment destination.
Mr Ewalefoh, however, urged the World Bank to increase support for Nigerian government agencies by providing funds and capacity development to generate more eligible project pipelines.
The DG said there was a nexus between the investment opportunities in Nigeria and the role the capital market could play in tapping into that potential.
He said in the area of PPP processes, the commission had streamlined its processes to ensure accelerated delivery of PPP infrastructure projects.
The statement quoted Patricia Canziani, the leader of the World Bank delegation, as saying, “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.”
Ms Canziani said the purpose of the programme was to work together with stakeholders in Nigeria and identify ways to support the development and roles of the capital market in Nigeria.
She commended the ICRC for its role in regulating PPPs, urging it to work with other players to develop new products and build investor confidence.
(NAN)
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