The World Bank has announced plans to introduce its Joint Capital Markets Programme (J-CAP) in Nigeria, aiming to unlock investment opportunities and strengthen the country’s financial sector.
Patricia Canziani, Global Head of Capital Markets and Housing at the International Finance Corporation (IFC), made this known during a meeting with the Infrastructure Concession Regulatory Commission (ICRC) in Abuja.
The IFC, a subsidiary of the World Bank Group, is leading efforts to facilitate capital market expansion in developing economies.
J-CAP is a World Bank initiative designed to mobilize funds for key sectors such as infrastructure, housing, and agriculture by deepening local capital markets.
According to a statement by Ifeanyi Nwoko, Acting Head of Media and Publicity at the ICRC, the discussions in Abuja focused on strategies to unlock Nigeria’s capital market potential and attract international investment.
Canziani highlighted the significant interest from global investors in Nigeria’s capital market but noted that certain barriers must be addressed to fully harness these opportunities.
“The purpose of our visit is to introduce J-CAP, which has already been launched in 20 countries. We are here to collaborate with Nigerian stakeholders and identify ways to strengthen the capital market’s role in financing projects,” she said.
She also emphasized the potential of Nigeria’s capital market to finance public-private partnerships (PPPs) and develop new financial products that can attract global funding.
ICRC Director-General Jobson Ewalefoh underscored the importance of capital markets in Nigeria’s infrastructure development, stating that alternative financing mechanisms are at the core of the commission’s policy agenda.
“The World Bank and IFC’s visit is crucial as it could redefine Nigeria’s infrastructure financing landscape. Accessing capital market funds will be a game-changer,” Ewalefoh said.
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He noted that while project viability is not a challenge, investors remain cautious due to perceived risks and limited information about opportunities in Nigeria.
To address these concerns, Ewalefoh urged the World Bank to support Nigerian agencies with funding and capacity development.
He also emphasized the need for improved communication about investment opportunities to attract global capital.
With the introduction of J-CAP, Nigeria’s financial landscape could experience a major transformation, creating more avenues for sustainable funding and economic growth.