Abuja, Sept. 8, 2023: The Securities and Exchange Commission (SEC) says the country’s capital market has the capacity and well positioned to finance Public-Private Partnership (PPP) infrastructure projects.
A statement by SEC said that the Director-General of the Commission, Mr Lamido Yuguda said this in Abuja on Thursday.
He said the common model used in many developed countries was partnership between the governments and private sector to raise debt capital for PPP projects through bonds and loans.
Yuguda cited a World Bank report which said that the country’s current level of public spending on infrastructure was one of the lowest globally.
He said this lack of investment had resulted in a significant infrastructure gap, which had affected the quality of infrastructure and limited access to essential services.
Yuguda said that given the current rate of capital expenditure, it would take approximately 300 years for the country to bridge its infrastructure gap.
He stressed the need for a new approach to financing infrastructure development in the country to stimulate economic growth.
”Governments can issue bonds to finance their share of the project costs while private companies can secure loans or issue corporate bonds for their contributions.
”The capital market’s ability to provide funding, risk management tools, liquidity, and efficient allocation of resources makes it a crucial partner in the success of PPP projects.
”It allows governments and private sector to partner to leverage their strengths and resources to deliver essential public infrastructure and services,” the director-general said.
