Infracredit and French Development Agency (AFD) sign agreement to support local projects in Nigeria

InfraCredit, a credit guarantee institution specializing in infrastructure projects in Nigeria, and the French Development Agency (AFD) have signed a technical assistance financing agreement. Through the latter, AFD supports the implementation of feasibility studies as well as the development of technical assistance for projects identified by Infracredit as needing to be bankable and to attract the private sector. This action should enable them to access long-term financing in local currency via the domestic bond markets.

The technical and legal assistance as well as the feasibility studies attributed to the projects, selected in agreement between AFD and InfraCredit, will lead, among other things, to the implementation of infrastructure projects or the creation of new jobs.

InfraCredit's PPP guarantee program was developed to facilitate the sustainable financing of new infrastructure projects alongside local governments in Nigeria. Such projects, if eligible, could benefit from the InfraCredit guarantee which makes it possible to mobilize financing in local currency for up to 20 years from the domestic bond markets.

 Regarding the said agreement, the Chief Executive Officer of InfraCredit, Chinua Azubike, affirmed that: "To date, InfraCredit's guarantees have enabled the granting of the local currency equivalent of 266 million dollars of infrastructure bonds, of which 61% for PPP projects. However, a larger number of infrastructure projects at the local level require a preparatory phase to deliver viable and well-structured projects that can thus access domestic bond markets. This collaboration will enable local governments to adopt new financing tools and attractive PPP schemes to mobilize private finance to invest in viable infrastructure projects. AFD’s technical assistance will enable InfraCredit to build a pipeline of well-constructed projects supported by both government entities and the private sector. » In addition, Xavier Muron, Country Director of AFD in Nigeria, declared about this agreement: "This €600,000 grant to InfraCredit will finance feasibility studies and technical assistance for future infrastructure through public-private partnerships across Nigeria. Ultimately, it aims to mobilize the private sector to a greater extent around infrastructure projects. »