How increased private sector involvement can boost infrastructural development

Operators in the Debt Capital Market (DCM), have stressed the need for government to increase private sector involvement in Nigeria’s infrastructure development.

Speaking at FMDQ’s DCM Development Project Webinar on, “Leveraging the Nigerian Debt Capital Markets for Infrastructure Development,” the operators described infrastructure development as a major tool for poverty reduction, job creation, and overall economic growth.

According to them, the inability of the public sector to deliver a more efficient investment spending amid competing priorities called for more private sector involvement in accelerating infrastructure development in Nigeria.

Specifically, the Chief Executive Officer, FMDQ Group, Bola Onadele, said while private sector financing was critical, the capital market needed to be harnessed to raise alternate finance.

He noted that the capital market provides a key avenue through which infrastructural growth can be fostered to promote economic development.

“With access to financing is a top challenge in infrastructure development, private sector financing is critical and the capital market needs to be harnessed to raise alternate finance to be deployed to diverse projects through the issuance of long term securities.

“As the government continues to communicate its commitment to investing more in the country’s infrastructure, it is apparent the private sector needs to play a role to ensure necessary capital is channelled into the extremely vital areas, which should drive the much-needed growth and development.

He said FMDQ would ensure that private companies, irrespective of size, accessed the market for funding and raising vital capital to expand operations to function as efficiently as possible within their various sectors.