In a move aimed at bolstering Nigeria’s infrastructure financing landscape, the African Development Bank Group (AfDB) has finalized a $15 million subordinated unsecured 10-year facility with InfraCredit, a leading ‘AAA’ rated infrastructure credit guarantee institution in Nigeria.
The agreement marks AfDB’s second investment in InfraCredit, following an initial $10 million facility in 2020.
Lamin Barrow, Director General of AfDB, emphasized the strategic significance of the partnership during the signing ceremony, indicating its role in mobilizing capital from domestic institutional investors to address Nigeria’s substantial infrastructure deficit.
”The $15 million facility will strengthen InfraCredit’s capital base, supporting its mission to facilitate private sector financing across critical sectors such as power, renewable energy, telecommunications, healthcare, green housing, and transportation.
”This investment will increase InfraCredit’s funded capital base to $187 million (about N264 billion).
”InfraCredit has been pivotal in facilitating access to N218 billion ($445 million) in local currency finance over the past seven years, enabling 12 first-time issuers and over 20 infrastructure projects.
”Notably, its guarantees have enabled landmark financing initiatives, including Nigeria’s first 15-year green infrastructure bond and extended corporate bond tenors beyond market norms to 20 years,” Barrow said.
Chinua Azubike, CEO of InfraCredit, expressed gratitude for AfDB’s continued support, highlighting their endorsement of InfraCredit’s business model amid challenging market conditions.
He emphasized the institution’s track record of maintaining strong fundamentals, portfolio performance, and profitability.
Also speaking, Solomon Quaynor, Vice President for Private Sector, Infrastructure, and Industrialization at AfDB, affirmed the bank’s commitment to scaling up private sector financing across Africa.
He noted that AfDB’s involvement extends beyond Nigeria, supporting the establishment of similar institutions across the continent to foster economic growth and development.
”The partnership between AfDB and InfraCredit is a concerted effort to accelerate infrastructure development, job creation, and sustainable economic growth in Nigeria, leveraging local capital markets to meet the continent’s growing infrastructure needs,” Quaynor added.
In a related development, the AfDB has approved an $80 million loan destined for the Ekiti Knowledge Zone project in Nigeria, which is aimed at fostering digital innovation and entrepreneurship.
The initiative anticipates generating 26,000 jobs and contributing approximately $14 million annually in net economic benefits.
Officially endorsed by the federal government and spearheaded by the state, the Ekiti Knowledge Zone is a Special Economic Zone equipped with fiscal incentives to attract private sector investments across digital technology and knowledge economy value chains.
