Financial industry experts have urged banks nationwide to assist the government in funding infrastructure to open up prospects for economic revival.
At the 2022 fellowship investiture of the CIBN, Dr. Ken Opara, president of the Chartered Institute of Bankers of Nigeria (CIBN), Opuiyo Oforiokuma, a finance and infrastructure specialist, and other experts advised financial institutions to come up with various ideas in a way to fund infrastructure in Nigeria.
Speaking at the event, Opara asserted that the government cannot finance infrastructure development alone and asked the banks to become involved to build the economy, adding that it is necessary to begin discussing the various options as infrastructure financiers.
“It is near impossible to expect the government to foot the entire bill. The approach adopted by the government in tackling infrastructure challenges over the years has largely been through a combination of budgetary allocation augmented by foreign and domestic debts.
“This approach partly accounts for the continued rise in Nigeria’s debt profile resulting in increased cost of debt servicing to the country. In this regard, there are serious concerns that project financing mainly through debt is not sustainable in the long run.”
According to Opara, the key to closing Nigeria’s infrastructure gap is to adopt innovative ideas and methods for raising the money required for workable infrastructure projects.
“A good place to start for the government is to have a good financial model and a strong regulatory platform, so that financial institutions can allocate money in public-private partnerships to fund infrastructure development.”
Infrastructure is essential for economic progress, social development, and the ease of doing business in both established and developing nations, according to infrastructure expert Opuiyo Oforiokuma.
He stated that one of the main issues Nigeria is now dealing with is electricity supply, and that there is pressure on the nation to increase its investments in renewable energy.
In order to finance the nation’s infrastructure, he recommended financial institutions to participate in equity funds and purchase infrastructure bonds.
