NGX Capital Markets Conference: Finmin Ahmed: Nigeria working to introduce infrastructure bonds

Nigeria's Minister of Finance, Budget, and National Planning, Zainab Ahmed, recently discussed the government's efforts to introduce infrastructure bonds and support the country's capital markets during an insightful interview. The Nigerian capital market has experienced significant growth in terms of volume and efficiency, highlighting the importance of a sustainable market in driving economic development. Minister Ahmed emphasized the government's collaboration with the capital market to introduce new financial instruments, such as the Sukuk bond, which offers long-tenured bonds, including a groundbreaking 30-year bond. These initiatives aim to provide diverse investment opportunities for the public and deepen market activities. Additionally, the government has implemented regulations, like the Finance Act 2019, to expand market offerings, including real estate treasury investment certificates for retail investors. Through these efforts, Minister Ahmed aims to enhance retail participation in the capital market and promote a savings policy to broaden investor access. The success of Sukuk bonds has laid the foundation for the government to consider issuing long-term infrastructure bonds to fund critical projects. By tapping into pension funds, which hold substantial assets, the government aims to create impactful investment opportunities in infrastructure projects. The Minister highlighted ongoing discussions with federal and state entities, the central bank, and pension funds to facilitate the introduction of infrastructure bonds that would enable pension funds to invest in specific projects through capital market instruments. This strategic approach not only supports the capital market's growth but also aligns with the government's vision to drive economic development through sustainable investments in infrastructure. As Nigeria's capital market continues to evolve, these initiatives signal a promising future for investors and the country's overall financial landscape.