The Chairman of the Nigeria Sovereign Investment Authority (NSIA), Segun Ogunsanya, has called for enhanced mobilisation of domestic capital to address Nigeria's infrastructure deficit, revealing that the agency is spearheading a $1 billion infrastructure fund in collaboration with international development institutions.
Call for local capital formation
Speaking on the second day of the Invest Lagos 3.0 Summit, Ogunsanya emphasised the need to expand local participation in long-term infrastructure financing, arguing that Nigeria can no longer rely predominantly on external funding and development finance institutions (DFIs). He pointed out that significant pools of capital remain untapped within the country's financial system, particularly from pension funds, insurance firms, and the banking sector.
“I would like to see a deeper level of local capital formation. I have seen a lot of emphasis on DFIs and the money coming in from outside the country. But if you look deeply, we need to find ways of harnessing local capital, capital from pension funds, capital from insurance companies and capital from banks,” he stated.
Ogunsanya noted that domestic institutional investors represent a sustainable source of long-term financing that can be structured to support infrastructure projects through well-designed public-private partnership (PPP) arrangements.
$1 billion infrastructure fund
He revealed that the NSIA is currently anchoring a $1 billion infrastructure fund with support from the International Finance Corporation (IFC) to strengthen infrastructure investment and improve the bankability of major projects.
“A couple of days ago, we just got some confirmation from IFC. They’re going to be part of a $1 billion fund that we’re anchoring. This fund is designed to provide guarantees and support infrastructure investments,” he said.
He explained that the facility would address critical financing gaps across the infrastructure value chain, including project preparation, project development, risk guarantees, and the provision of risk capital.
“The funding is meant to cover four different areas of infrastructure investment — the project preparation phase, the development phase, those who require guarantees, and also the provision of risk capital itself,” he added.
De-risking projects and attracting private sector
According to Ogunsanya, the initiative is expected to de-risk infrastructure projects, attract private sector participation, and ensure stronger financial discipline in project selection and execution.
He also commended the Lagos State Government for its collaboration with the NSIA on strategic infrastructure initiatives, citing investments in the power sector, including support for the Victoria Island power station.
“We just commissioned another power station a couple of days ago. The Victoria Island power station is also being supported by the NSIA,” he said.
Inclusive urban development
While advocating accelerated infrastructure development, Ogunsanya cautioned that future urban growth must be guided by inclusiveness and affordability to prevent widening social and economic disparities.
“As we look at the city of the future, there is one thing we must pay attention to. We should make this a very affordable and inclusive city. We should not build islands of prosperity surrounded by poverty-stricken communities,” he said.
He maintained that sustainable urban development must deliver broad-based economic opportunities and improved living standards for all residents, rather than concentrating prosperity in a few select areas.
