Connect with us

General

InfraCredit Targets N1trn to Unlock Infrastructure Funding

Published

on

InfraCredit

By Adedapo Adesanya

Infrastructure Credit Guarantee Company (InfraCredit) is targeting about N1 trillion over the next four years to unlock long-term funding for infrastructure projects in Nigeria.

According to the Lagos-based credit-guarantee company’s chief executive, Mr Chinua Azubike, it expects to execute the target  transactions from its existing pipeline.

He said the pipeline comprises contracted clients that have completed initial screening, signed mandate letters and entered due diligence, with loan approvals and financial close expected over the next four years, he said.

“We have seen moderation in interest rates and stability in the foreign-exchange environment, and so we see opportunities to actually do more in the capital market in Nigeria,” Azubike said, as per Bloomberg.

Infracredit will be betting on looser leverage rules and easing borrowing costs that has been carried out by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN).

SEC last year proposed rules permitting such firms to maintain leverage of as much as 10 times capital while the Monetary Policy Committee (MPC) of the central bank cut rates by 50 basis points to 27 per cent in September, easing for the first time in five years.

Although the CBN held the interest rate at 27 per cent in November 2025, there are expectations that there will be further reductions as inflation continues to ease.

Bloomberg reported that InfraCredit has used its roughly N328 billion capital base to provide credit guarantees for 27 projects spanning roads, housing and renewable energy.

Last week, it provided credit enhancement for a local currency debt issuance by First Electric Power and Automation Services Limited, backing a clean energy project under a co-financing arrangement with the Climate Finance Blending Facility. The transaction marks the facility’s first mesh-grid clean energy project and its sixth deal overall.

The firm is now seeking to capitalize on President Bola Tinubu’s push to expand public works, as Nigeria faces an infrastructure funding gap estimated at more than $3 trillion over the next three decades.

“The guarantees we issue are designed to derisk projects” and enable “infrastructure companies to issue long-term debt that pension funds and insurance companies can lend to,” Mr Azubike said.

The InfraCredit CEO said the company plans to accelerate credit mobilization by tapping its over-the-counter listing and taking advantage of the new regulations that allow credit-guarantee firms to assume more risk to back additional lending.

“Our leverage now is roughly close to one time, so there is still room to stretch the company’s balance sheet by issuing more guarantees against its capital,” Mr Azubike said.

Launched in 2017 and backed at inception by the Nigeria Sovereign Investment Authority (NSIA) and the UK’s Private Infrastructure Development Group, InfraCredit now counts domestic institutional investors, mainly pension funds, among its largest shareholders, which hold about 40 per cent of the company.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

General

Nigeria Begins Evacuation of Willing Nigerians from Iran

Published

on

Nigeria flag with Iran flag, 3D rendering

By Adedapo Adesanya

The federal government has begun evacuating willing Nigerians in Iran, escorting them across the Armenian border to ensure their safety amid escalating tensions in the Middle East.

The evacuation follows the growing crisis that began on February 28 after coordinated military strikes on Iran by the United States and Israel.

The attacks triggered retaliatory missile and drone strikes across parts of the region, raising fears of a wider conflict.

The chief executive of the Nigerians in Diaspora Commission (NiDCOM), Mrs Abike Dabiri-Erewa, disclosed this in a post on her X handle on Tuesday.

She said officials of the Nigerian Embassy in Tehran are coordinating the evacuation of Nigerians who wish to leave the country and are facilitating their safe passage into Armenia.

Mrs Dabiri-Erewa also reassured that no Nigerian in Iran has so far been affected by the ongoing tensions, noting that embassy officials remain stationed at the border to receive and assist evacuees.

Her post read, “Willing Nigerians [are] being escorted across the Armenian border by officials of the Nigerian embassy in Iran for safe passage. No Nigerian in Iran has been affected by the war as officials remain at the border to receive all who want to leave.”

The development comes as tensions in parts of the Middle East continue to raise concerns over the safety of foreign nationals residing in affected areas.

For repatriation flights, the NiDCOM chair said the airspace is currently unsafe but assured Nigerians in the Middle East that the Federal Government team is on standby to evacuate them.

“And as for repatriation flights, the skies are currently unsafe to fly. Luckily, a flight came in from the UAE to Lagos two days ago, just before another strike and the closure of the airspace.

“Once the airspace opens, the multi-agency FG team on crisis and evacuation is on standby. Our prayers are with you and all our people in affected countries,” she said.

Continue Reading

General

Grid-Connected Private Transmission Substations Must Register—NERC

Published

on

NERC

By Modupe Gbadeyanka

All private transmission connected to the national grid must register and get authorisation to operate, the Nigerian Electricity Regulatory Commission (NERC) has declared.

In a statement, the electricity regulatory body in Nigeria directed owners of private transmission substations used by bulk electricity consumers to obtain an Independent Electricity Transmission Network Operator (IETNO) Permit before operating or connecting to the grid.

It was disclosed that this latest development, which became effective March 9, 2026, is to strengthen oversight of privately owned substations connected to Nigeria’s national grid.

NERC further said the directive was introduced to improve grid reliability, safety, and operational visibility following frequent transmission line trips reported by the Nigerian Independent System Operator (NISO).

Under the order, NISO must submit to NERC a comprehensive list of all existing Private Transmission Substation Owners (PTSOs) and notify them of the provisions of the order within five days.

Existing PTSOs must apply to NERC for an IETNO permit within 45 days, while new PTSOs must obtain the permit before connecting to the grid, as non-compliance attracts regulatory sanctions.

NISO will deploy IoT-based metering systems at substation interconnection points within 120 days.

Further, operators must submit monthly operational reports, while NISO will conduct inspections to ensure compliance.

Continue Reading

General

NECA’s Annual Retreat for Business Managers, Executives Holds April 16

Published

on

NECA Adewale Smatt-Oyerinde

By Aduragbemi Omiyale

The annual retreat for business managers and executives organised by the Nigeria Employers’ Consultative Association (NECA) will take place from April 16 to 18, 2026, at the AAE & T Hotel, Kuto, Abeokuta, Ogun State.

This year’s edition is themed The Resilient Enterprise, People and Systems: Building and Managing Businesses that Outlive Seasons, Cycles and Crises.

The programme aims to equip leaders with the insights, tools, and networks required to build resilient organisations in an increasingly complex business environment.

It will provide a unique platform for executive-level engagement through high-level conversations, peer learning sessions with experienced leaders, strategy reflection workshops, and curated networking opportunities.

Expected to attend are industry leaders, senior executives, and business managers from across sectors. They will explore strategies for sustaining organisational performance through leadership transitions, economic cycles, regulatory shifts, and market disruptions.

Participants will also benefit from interactive discussions focused on strengthening corporate governance, developing agile leadership capabilities, and building organisational systems that can withstand periods of uncertainty and transformation.

A notice from NECA said the event is open to both members and non-members, with participation fees set at N300,000 for members and N320,000 for non-members. Discounts will also be available for Gold and Silver members, subject to applicable terms and conditions.

Interested participants are encouraged to register via the official registration link to secure their place at the retreat, which promises to deliver valuable insights and connections for executives seeking to build enterprises capable of thriving through seasons of change and uncertainty.

The Director-General of NECA, Mr Adewale Smatt-Oyerinde, noted that by convening business managers and senior executives in a collaborative learning environment, the association aims to contribute to the development of stronger, future-ready enterprises that can drive economic growth, create jobs, and support national development even in the face of evolving global and local challenges.

He added that the retreat will provide executives with the opportunity to step away from daily operational demands and engage in deeper strategic conversations with peers and industry experts.

“The theme of this year’s retreat speaks directly to the realities businesses face today. Across sectors, organisations are navigating leadership transitions, regulatory shifts, economic pressures, and technological disruption.

“What distinguishes enduring enterprises is their ability to build strong systems, develop capable leaders, and create organisational cultures that can adapt and respond effectively to change,” the NECA chief said.

Continue Reading

Trending