CEOAFRICA gathered that the FBN Capital Limited has declared that Nigerian banks cannot fund the $8 billion yearly power needs alone and has therefore called for the support of institutional and foreign investors to fund the huge resources needed to drive various ongoing infrastructure projects, for the next 10 years.

According to Patrick Mgbenwelu, Director and Head, Project and Structured Finance, FBN Capital Limited, this at the 1st FBN Capital Project and Infrastructure Finance Conference which held in Lagos, specifically considering the nation’s power projects alone, about $8- $12 billion would be needed yearly for the next 10 years, to meet up with the large deficit of power demand and supply in the nation, which the banks alone would not be able to fund.

Mgbenwelu said the multi-billion dollar government projects will require private sector involvement, therefore creating the need for Special Purpose Vehicles (SPVs) as obligator financial vehicles.

While highlighting the importance of infrastructure finance, he said investors can choose to approach finance institutions and seek funds either as a corporate entity or directly through the projects, (Corporate Finance route or Project Finance).

According to him, project finance as an option for accessing funds is an avenue for managing risk, instead of bearing them directly as a corporate organisation. “Additional expansion funding can be raised with ease, subject to the project achieving steady state'' he added.