The Nigerian government has initiated discussions with the International Finance Corporation (IFC), a member of the World Bank Group, to explore policy options aimed at leveraging the capital market and other domestic funding sources to finance infrastructure projects through Public-Private Partnerships (PPP).
This was the focal point of a recent meeting between the Infrastructure Concession Regulatory Commission (ICRC) and the World Bank team, which was in Nigeria for a fact-finding mission to assess how to unlock and develop the country’s capital market for infrastructure funding.
A statement issued by the Acting Head of Media and Publicity, Ifeanyi Nwoko, confirmed this development on Sunday in Abuja.
During the meeting, Dr. Jobson Ewalefoh, the Director General of ICRC, emphasized that the World Bank team’s visit was a significant step that could reshape Nigeria’s infrastructure development landscape.
Ewalefoh highlighted that alternative financing methods, including tapping into the capital market for PPPs, were central to his innovative financing policy agenda.
Following the technical discussions, Ewalefoh remarked that securing funding was critical for advancing infrastructure projects and that unlocking the capital market would be a major milestone.
“The World Bank and IFC visited to explore ways to unlock the potential of the capital market for infrastructure funding. We discussed the opportunities, challenges, and the importance of accessing the vast funds available in the capital market for development,” he said.
He also pointed out that while the viability of projects was not an issue, investors were concerned about certain risks and the lack of awareness about Nigeria’s investment opportunities.
Ewalefoh urged the World Bank to further support Nigerian government agencies by providing funds and capacity-building initiatives to help develop a stronger pipeline of eligible projects.
He reiterated the ICRC’s commitment to communicating Nigeria’s investment potential, noting the important connection between investment opportunities and the capital market’s role in harnessing these prospects. Additionally, he mentioned that in response to President Bola Ahmed Tinubu’s directives, the Commission had streamlined its PPP processes to facilitate faster delivery of infrastructure projects.
Patricia Canziani, leader of the World Bank delegation, explained that the purpose of their visit was to introduce the Joint Capital Markets Program (J-CAP) to Nigeria, which has been implemented in 20 countries globally. The initiative aims to collaborate with stakeholders in Nigeria to identify ways to support the development of the capital market and enhance its role in financing infrastructure.
“The Nigerian capital market already has a variety of products, but we are here to explore ways to develop new financial instruments for the country,” Canziani said.
She praised the ICRC for its efforts in regulating PPPs and urged the Commission to collaborate with other stakeholders to create new products that will attract investor confidence. She also mentioned that there is considerable untapped interest from international investors.
The IFC’s visit to the ICRC is part of a series of meetings with key government and private sector players to support the development of the capital market in Nigeria.
