AFC, NGX unveil capacity programme to bridge infrastructure funding gap

AFC, NGX unveil capacity programme to bridge infrastructure funding gap

Africa Finance Corporation and Nigerian Exchange Limited have partnered to strengthen the technical capabilities of stakeholders in structuring and financing infrastructure projects through Nigeria’s capital markets.

According to a statement from the partners on Monday, the duo recently concluded a two-day capacity-building programme aimed at strengthening technical capacity in the sector.

The workshop, held this month in Lagos, convened professionals from regulatory agencies, institutional investors, project sponsors, and financial institutions to enhance expertise in project and infrastructure finance and to explore how Nigeria’s capital markets can serve as a critical platform for financing sustainable infrastructure.

The Nigerian Institution of Estate Surveyors and Valuers said Nigeria’s 30 per cent infrastructure stock, far below the 70 per cent global benchmark, could create a $2.3tn deficit by 2043, with $100bn needed yearly to close the gap.

Executive Board Member and Head of Financial Services at AFC, Banji Fehintola, said, “Closing the continent’s funding gap requires building local expertise and robust market structures that can support complex, long-term projects. At AFC, we are committed to advancing not just project financing, but the full framework required to deliver bankable, sustainable infrastructure solutions. Our partnership with NGX reflects our belief that Nigeria’s capital markets can and must play a pivotal role in mobilising the scale of domestic resources required to drive the country’s long-term development.” Over the two-day programme, participants explored frameworks for project structuring, risk allocation, and credit enhancement, tools essential for bringing infrastructure assets to market. The sessions also examined emerging capital market instruments, including green bonds, infrastructure REITs, blended finance structures, and partial risk guarantees, highlighting practical pathways to mobilise long-term domestic and international capital for infrastructure.

Chief Executive Officer of NGX, Jude Chiemeka, highlighted the importance of deepening expertise across the market.

“As capital markets take on a more central role in financing Africa’s development, building technical expertise across the entire ecosystem becomes crucial. Through NGX X-Academy, our dedicated capacity-building platform, we are equipping market participants with the specialised knowledge needed to originate, structure, and manage infrastructure assets that meet both local needs and global investment standards,” Chiemeka said. “This collaboration with AFC is a vital step in ensuring that Nigeria and the wider region develop the institutional capabilities to attract and deploy patient capital at scale.”

The workshop marked a milestone in the growing collaboration between AFC and NGX, reinforcing their shared commitment to unlocking sustainable, market-led infrastructure financing. Both institutions said they plan to build on this momentum through follow-up initiatives aimed at deepening engagement and translating insights from the programme into tangible financing solutions for critical infrastructure projects.

Source: https://punchng.com/afc-ngx-unveil-capacity-programme-to-bridge-infrastructure-funding-gap/