FG targets capital market to fund infrastructure

The Federal Government is considering alternative funding for infrastructure through Public-Private Partnerships (PPP) using the capital market.

The government is making the arrangement in collaboration with the International Finance Corporation (IFC), a subsidiary of the World Bank.

Projects being targeted are roads, rails, ports and Information Technology (IT).

Others are in the health, education, transport and agriculture sectors.

Because of the huge amount of money required to bridge the infrastructure deficit, the government goes outside the budgetary revenue to fund projects.

Some of these include bonds, private firms financing and long-term loans from multilateral organisations.

Officials of the IFC and those of the Infrastructure Concession Regulatory Commission (ICRC) have been meeting to perfect the plan.

Acting Head of Media and Publicity ICRC, Ifeanyi Nwoko, confirmed the meetings.

According to him, discussions have centred on ways to develop and unlock Nigeria’s capital market.

He quoted ICRC Director-General, Dr. Jobson Oseodion Ewalefoh, as saying the IFC team visit was significant and could redefine infrastructure development in the country.

Ewalefoh noted that alternative financing options, such as using the capital market for the PPP model, are central to his innovative financing policy.

After the technical session, the ICRC DG explained that funding is a critical factor in infrastructure development, and unlocking the capital market would be a major achievement.

“The World Bank and IFC came to explore how we can use the capital market to fund infrastructure.

“We discussed the opportunities, challenges, and the importance of accessing the huge funds available in the capital market,” he said.

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