Nigeria's ambition to become a $1 trillion economy by 2030 hinges on developing bankable infrastructure projects, according to Oluwafunbi Adewoyin, a corporate finance expert and associate chartered accountant with the Institute of Chartered Accountants of Nigeria (ICAN). Speaking to BusinessDay, Adewoyin emphasized that transport, energy, and power infrastructure are critical to achieving sustainable GDP growth. He highlighted that private sector developers must align their projects with credit requirements to secure financing, as pension funds allocated to infrastructure have surged by 21% to N388.8 billion by June 2026, up from N242.2 billion in December 2024, according to the National Pension Commission (PenCom).
Adewoyin outlined specific criteria institutional investors demand for infrastructure projects, including Power Purchase Agreements (PPAs) for energy ventures and proof of technical expertise in operations and maintenance. He stressed that developers must demonstrate regulatory compliance, asset viability, and cash flow generation capabilities to meet lender expectations. These requirements, he explained, ensure projects can withstand stress-testing for variables like construction delays, currency fluctuations, and tariff changes, which are evaluated through metrics such as Debt Service Coverage Ratio (DSCR) and Project IRR.
The Africa Finance Corporation’s 2025 State of Africa’s Infrastructure Report underscores that addressing high-impact needs will attract foreign investment, a priority for Nigeria’s infrastructure sector. Adewoyin urged developers to prioritize sensitivity analysis to validate project resilience, ensuring repayment capacity and alignment with loan terms. He noted that viable projects are essential to harness the growing pension fund allocations, which now exceed N388.8 billion, to catalyze economic transformation.
Public interest implications of this focus on bankable projects include improved economic stability, job creation, and enhanced access to critical services like energy and transportation. Adewoyin’s insights highlight the interplay between financial rigor, regulatory frameworks, and strategic planning in Nigeria’s quest to unlock its economic potential, positioning infrastructure as both a challenge and a cornerstone for national development.