Question

Case memo: Infrastructure in Nigeria: Unlocking Pension Fund Investments

• Could Infrastructure Credit Guarantee Company (InfraCredit) become a very large player?
• If the model was proven, could it be replicated in other nations?
• What would be the conditions precedent to make other nations attractive for an InfraCredit model?

Answer 1

ANS 1. Infracredit will be a major player as it helps in Development of infrastructure and helps in Economic growth and development . Inspite, of  the increase in government funding in a country ,  infrastructure investment remains insufficient. It addresses the need of long term capital in Development of Nigeria . and it attract investment from pension funds , insurance firm and other long term investors . It also encourage the pension   market to invest in long term bonds for Development of Infrastructure projects like energy supply , transportation , communication etc. Hence , infracredit helps in overall Development of a economy.

ANS 2. It can be replicated to other nations as well as infracredit model can be useful in increasing infrastructure facilities of underdeveloped and developing nation's.of East Africa and South Asia and many discussion are in process to apply this model in Pakistan and Kenya . As , it helps in pooling of funds from different investment market which builds nation's infrastructural projects which is required for it's Development.

ANS 3. CONDITIONS TO ATTRACT OTHER NATION - to make other nations attract to infracredit,

1. It requires strong expertise and working partnership among investors firms which can make infracredit possible.

2. There is need to institutionalise the bond market reforms.and introduce many Economic reforms.

3. Feasible studies and capital markets training programme by national stock exchanges is required to establish infracredit.

These conditions will help in implementing the infracredit which develop the credit markets of nations.