The World Bank has revealed that plans are underway to introduce its Joint Capital Markets Programme (J-CAP) in Nigeria to boost infrastructure financing.
The Global Head of Capital Markets and Housing, Financial Institutions at the International Finance Corporation (IFC), a subsidiary of the World Bank Group, Patricia Canziani made this known when she led a World Bank Group delegation to a meeting with the Infrastructure Concession Regulatory Commission (ICRC) in Abuja.
The J-Cap, a World Bank initiative, helps developing economies strengthen their capital markets, aiming to increase funding for strategic sectors like infrastructure, housing, and agriculture.
The meeting, according to a statement issued on Sunday, by the Acting Head of Media and Publicity at the ICRC, Ifeanyi Nwoko, focused on how to develop and unlock the potentials of the capital market in Nigeria.
Speaking during the meeting, Canziani said the essence of the meeting was to gather information that would enable the global bank to introduce its the J-CAP in Nigeria.
She said there are a number of untapped interests from potential international investors.
“The purpose of our visit is to introduce the J-CAP programme which we have introduced to 20 countries Worldwide and the purpose of the programme is to work together with the stakeholders in Nigeria and identify ways to support the development and roles of the capital market in Nigeria,” Canziani said.
“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.”
She also commended the ICRC for its role in regulating Public-Private Partnerships (PPPs) and urged it to work with other players to develop new products and build investor confidence.
In his address at the meeting, the Director-General of ICRC. Jobson Ewalefoh, said the visit of the team was important as it could redefine the space of infrastructure development in Nigeria.
He said alternative finance options like the capital market to fund PPPs are at the heart of his innovative financing policy agenda.
Ewalefoh added that funding is at the core of infrastructure development, hence, unlocking the capital market would be a milestone.
“The World Bank and IFC were here to see what we can do in unlocking the potentials of the capital market in funding infrastructure development,” ICRC DG said.
“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 in Nigeria.
“At the end of the day, we agreed that viability is not a problem but there are other risks that investors were weary of and also the lack of information about the opportunities that abound in Nigeria as a key investment destination.”
He, however, urged the World Bank to do more in supporting Nigerian government agencies with funds and capacity development to come up with more eligible projects.
By: Babajide Okeowo
