…to boost energy transition, sustainable development through capital market listing
By Dare Akogun
The United Kingdom has stepped up support for Nigeria’s sustainable infrastructure development and energy transition with a catalytic investment of N9.5 billion ($6 million) in InfraCredit, Nigeria’s pioneering domestic credit guarantor.
The investment, made through the UK government’s MOBILIST programme, supports InfraCredit’s landmark listing on Nigeria’s NASD OTC Exchange Plc. The total transaction is valued at N64 billion ($41 million), with InfraCredit raising N27 billion ($17.7 million) in fresh equity as part of the listing.
Nigeria is facing an estimated infrastructure investment gap of over $2.3 trillion between 2021 and 2043. However, the long-term capital required is not readily available within the local banking sector.
InfraCredit helps to bridge this gap by offering Naira-denominated guarantees that de-risk infrastructure investments and boost their creditworthiness, making them attractive to local institutional investors such as pension funds and insurance companies.
InfraCredit has already used these guarantees to build a project pipeline exceeding N750 billion ($500 million). Now, with the backing of MOBILIST and equity investments from two pension funds, the company is poised to expand its reach and capacity to issue more guarantees that will unlock funding for additional projects.
The investment will also support InfraCredit’s transition to a greener portfolio, with increased focus on renewable energy investments in line with its green growth strategy.
Speaking on the development, Mr. Jonny Baxter, British Deputy High Commissioner in Lagos, said:
“InfraCredit’s success highlights the power and impact of long-term partnerships, and the UK via the Foreign, Commonwealth and Development Office (FCDO) is proud to have played a key role in not just the creation of InfraCredit through the Private Infrastructure Development Group (PIDG), but its continued growth.
“This transaction illustrates the potential of public markets to mobilise domestic capital at scale. By listing with the backing of MOBILIST, InfraCredit will enable local institutional investors to benefit from the growth opportunities presented by sustainable infrastructure development in their own market.”
InfraCredit’s Chief Executive Officer, Mr. Chinua Azubike, described the listing as a significant milestone:
“This moment marks the beginning of a new chapter for InfraCredit. We are pleased with the confidence reposed in us by our new domestic institutional investor shareholders alongside the UK Government through MOBILIST, and our transition to a listed public company.
“This reflects our ambition to build a deeper, more inclusive capital market for domestic resources that accelerates infrastructure delivery in Nigeria. By broadening our ownership and adhering to public market standards, InfraCredit aims to strengthen investor confidence as a trusted catalyst for sustainable infrastructure finance.”
InfraCredit was established in 2017 by GuarantCo, a PIDG company, in partnership with the Nigerian Sovereign Investment Authority (NSIA).
Since inception, it has played a critical role in deepening Nigeria’s domestic debt capital market. The model has since been replicated in other countries, such as Pakistan and Kenya.
Other strategic partners in InfraCredit include InfraCo Africa, British International Investment (BII), and Financial Sector Deepening Africa (FSDA). The company is also exploring a future listing on the Nigerian Exchange (NGX), as part of its growth plan.
The UK’s partnership with NGX and continued investment through the MOBILIST programme underscores its long-term commitment to supporting Nigeria’s infrastructure and sustainable development agenda through robust capital market solutions.
