The Securities and Exchange Commission (SEC) depending on a World Bank report, has stated that based on the current level of public spending on infrastructure which is regarded as one of the lowest globally, it would take approximately 300 years to bridge Nigeria’s infrastructure gap.
The Director-General of, the Securities and Exchange Commission (SEC), Mr Yakubu Yuguda stated this at the 2023 Chartered Institute of Stockbrokers (CIS) National Workshop which was held in Abuja.
He spoke on the theme, leveraging the capital market to drive public-private partnerships for effective national economic growth.
The SEC DG who was represented by the Executive Commissioner, Corporate Services, Ibrahim Boyi, stressed the need for a new approach to financing infrastructure development in Nigeria to stimulate economic growth and argued that leveraging public-private partnerships is essential, and the capital market can play a crucial role in this regard.
He stated that the Nigerian Capital Market has the capacity and is well-positioned to finance Public-Private Partnership (PPP) infrastructure projects in the country.
The Director-General explained that the capital market, with its patient capital and established project financing options, is well-suited to finance PPP infrastructure projects at various levels.
He cited the common model used in many developed countries, where governments and private sector partners raise debt capital for PPP projects through bonds and loans.
His words, “This is an infrastructure financing model that is a common choice in many developed nations of the world.