FG, W\Bank Discuss Capital Market Solutions for Infrastructure Funding

The World Bank has announced plans to introduce its Joint Capital Markets Programme (J-CAP) in Nigeria, aiming to strengthen the country’s capital markets and increase funding for key sectors such as infrastructure, housing, and agriculture.

Mrs. Patricia Canziani, Global Head of Capital Markets and Housing, Financial Institutions at the International Finance Corporation (IFC), disclosed this during a recent meeting with the Infrastructure Concession Regulatory Commission (ICRC) in Abuja. The IFC, a subsidiary of the World Bank Group, is leading the initiative to identify ways to unlock the potential of Nigeria’s capital market.

According to a statement from Mr. Ifeanyi Nwoko, Acting Head of Media and Publicity at the ICRC, the meeting focused on strategies to attract investments and create financial products tailored to Nigeria’s infrastructure needs. Mrs. Canziani emphasised that Nigeria’s capital market has significant untapped interest from potential international investors, and the introduction of J-CAP could help bridge this gap.

“The purpose of our visit is to introduce the J-CAP programme, which we have already implemented in 20 countries worldwide. This programme aims to collaborate with stakeholders in Nigeria to support the development of the capital market and explore new financial instruments,” Mrs. Canziani stated.

She highlighted the critical role of the capital market in funding public-private partnerships (PPPs) and noted that while Nigeria already has various financial products, the World Bank and IFC could help develop newer, more sophisticated investment options. She also praised the ICRC for its efforts in regulating PPPs and encouraged further collaboration with industry players to boost investor confidence and expand financing options.

Mr. Jobson Ewalefoh, Director-General of the ICRC, welcomed the World Bank’s initiative, describing it as a potential game-changer for Nigeria’s infrastructure development. He emphasised that alternative financing sources such as the capital market are central to his innovative financing policy agenda.

“The World Bank and IFC’s visit is crucial because it could redefine the way we fund infrastructure in Nigeria. We need to unlock the capital market’s potential to finance major infrastructure projects,” Mr. Ewalefoh explained.

During the meeting, discussions centred on the opportunities and challenges facing Nigeria’s capital market, particularly the lack of information available to investors. Mr. Ewalefoh noted that while Nigerian infrastructure projects are generally viable, investors remain concerned about risks and regulatory uncertainties.

“At the end of our discussions, we acknowledged that project viability is not the main issue. However, there are lingering risk concerns among investors, as well as a lack of adequate information on Nigeria’s vast investment opportunities,” he added.

Mr. Ewalefoh urged the World Bank to provide more financial and capacity-building support to Nigerian government agencies, enabling them to develop a stronger pipeline of bankable projects. He reaffirmed the ICRC’s commitment to enhancing investor awareness, emphasizing the critical link between Nigeria’s investment potential and the role of the capital market in mobilising funds.