Prof. Uche Uwaleke, a notable financial expert, has emphasized the necessity for a reconsideration of Nigeria’s infrastructure financing methods in light of the country’s escalating public debt. He suggests that alternatives within the Nigerian capital market, such as infrastructure bonds, funds, and investment trusts, could attract both institutional and individual investors into viable projects.
In a recent article entitled ‘Beyond Government Borrowing: How the Capital Market can Unlock Opportunities to Finance Nigeria’s Infrastructure,’ Uwaleke advocated for a shift from the traditional model where the government bears most of the financial risks. Instead, he proposes leveraging government resources and regulations to entice private investments.
With Nigeria’s public debt rising to N166.79 trillion by mid-2026—a 9.4% increase from the previous year—Uwaleke stressed the need to focus on mobilizing long-term capital. He highlighted the burden of debt service on government resources, projecting that Nigeria will spend approximately US$11.6 billion on debt servicing in 2026, which is nearly half of expected government revenue.
Uwaleke noted that structured investment vehicles could provide long-term financing for projects, particularly where the revenue streams support repayments. He pointed to the Abuja-Keffi-Akwanga-Lafia-Makurdi road project, financed predominantly through a foreign facility, as a successful model of using external funds to reduce immediate budget impacts.
He mentioned that developing infrastructure financing models similar to India’s National Investment and Infrastructure Fund (NIIF) could be beneficial. He also proposed enhancing the existing Nigeria Sovereign Investment Authority (NSIA) to attract additional funding from domestic and international investors.
Overall, Uwaleke’s insights underline the importance of strategically utilizing the capital market to foster infrastructure development in Nigeria without exacerbating the country’s debt challenges.
