Nigeria is developing a new financing structure to unlock billions of dollars in infrastructure funding in Nigeria and across Africa.
The managing director and chief executive officer of NG Clearing Limited, Farooq Oreagba, who spoke with LEADERSHIP on the sidelines of the just concluded 2025 IMF/World Bank Annual Meetings in Washington DC said, the initiative, which was developed in collaboration with the African Development Bank (AfDB) and other multilateral institutions seeks to bridge the continent’s persistent infrastructure gap through innovative financial engineering that allows development lenders to extend more credit without burdening their balance sheets.
“We have developed a structure that allows multilaterals to give loans without affecting their balance sheets. What that means is that they can now leverage and lend even more money. So, whereas before you could only put $20 billion on your balance sheet, now you might be able to put $50, $60, or even $70 billion,” Oreagba explained.
He noted that the proposal, which has received strong interest from key stakeholders, could significantly increase capital flows into African economies if combined with public-private partnership (PPP) models and a clear demonstration of government commitment.
‘The rule of law is very important, and the private sector wants to see that government has skin in the game. When that happens, private capital follows quickly,’ he said.
Oreagba further revealed that his discussions with multilateral and private investors began even before President Tinubu assumed office, with ongoing engagements now reaching advanced stages. He added that, ‘We came up with a solution that the President is very excited about. We are having another audience with him to finalise what we want to do.’
He stressed that the plan goes beyond Nigeria, describing it as a pan-African financing model designed to help developing markets attract sustainable capital. “It’s not just a Nigerian solution. I came here to meet donors, get feedback, and let the world know that Africa is about to open for business with a new solution to funding the infrastructure gap,” he said.
On Nigeria’s growing international recognition for its economic reforms, Oreagba said, the accolades from institutions such as the IMF, World Bank, and AfDB are welcome but must translate into tangible improvements in citizens’ lives.
“I represent Nigeria in everything, fashion, finance, horse riding, anything cultural. I’m a very proud Nigerian. But the same people who applaud you will shut you down tomorrow if you don’t deliver. Ultimately, it is about being able to deliver on our promises,” he said.
Despite challenges, Oreagba expressed optimism that Nigeria’s renewed reform momentum and innovative financing solutions could reposition the country as an investment destination of choice. He confirmed that the response from international financiers has been fantastic, with several high-profile meetings taking place during the Washington sessions.
He said the private sector has been fantastic, adding, “my biggest problem is dealing with bureaucrats, but once government hears there is money, they listen. By the time we meet here next year, I should be able to point to one or two visible changes and maybe, who knows, I’ll bring a horse.”
