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InfraCredit Gets $15m Loan From AfDB To Enhance Infrastructure Financing In Nigeria

The African Development Bank (AfDB) and Infrastructure Credit Guarantee Company Limited (InfraCredit) have signed an agreement for a $15m subordinated loan facility to strengthen InfraCredit’s capital base and attract institutional investors’ resources to help close Nigeria’s infrastructure financing gap.

The agreement was signed in Lagos by Lamin Barrow, Director General of AfDB’s Nigeria Country Department, and Chinua Azubike, CEO of InfraCredit.

According to a statement made available to THE WHISTLER on Friday, the facility will boost InfraCredit’s efforts to unlock additional long-term local currency financing through the capital markets for infrastructure projects, primarily by leveraging pools of capital from pension funds and other institutional investors in Nigeria.

Experts say that Nigeria needs $15bn annual spend, at least over six years, to close the infrastructural deficit.

“Our support to institutions such as InfraCredit demonstrates the importance of promoting innovative and scalable solutions to leverage pools of capital from domestic institutional investors, and position local capital market as a viable alternative source of long-term funding to bridge the continent’s huge infrastructure deficit, he stated,” said Barrow, while commenting on the agreement.

In his comment, Azubike said: “We are delighted by the African Development Bank’s confidence in our business model, which has successfully facilitated private sector investment in impactful infrastructure projects and InfraCredit’s clean energy roadmap that has accelerated green finance for climate-aligned infrastructure, fostering SME growth, job creation, sustainable energy access, and overall economic development. Despite challenging market conditions, we have consistently demonstrated strong fundamentals, solid portfolio performance, a proven track record, and profitability. The further expansion of our capital base by this facility will bolster our ability to support access to long-term local currency domestic credit for our rapidly growing pipeline of infrastructure projects currently worth over NGN 625 billion (US$ 430 million), fostering job creation and economic growth.”

On his part, Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialization of the AfDB Group, stated, “The African Development Bank is pleased to be providing additional capital to InfraCredit Nigeria. The success of InfraCredit has inspired the replication of its business model across the continent, a key part of our strategy for scaling up private sector financing in Africa. This is evidenced by our support for the establishment of a similar institution in Kenya covering the East Africa region.”

InfraCredit is a specialised Nigerian credit guarantee company that mobilises long-term capital from institutional investors to support infrastructure projects, including green and climate-aligned developments.

The partnership advances several strategic objectives under AfDB’s current country strategy for Nigeria, including stimulating local currency bond market financing across key infrastructure sectors and enhancing economic diversification and competitiveness.

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