Infrastructure deficit to hit $878bn by 2040 — SEC boss
Following the infrastructural gap in the country, the Securities and Exchange Commission, SEC, has stated that infrastructure deficit is expected to grow to $878 billion by 2040 if nothing is done.
Acting Director General, SEC, Ms Mary Uduk, who stated this at a workshop for capital market correspondents in Lagos weekend, said that for Nigeria to claw its way out of deficit in infrastructure, power and energy, transportation as well as eliminating environmental degradation, there is need for more domestic participation in green bonds investment.
She stated: “Infrastructural deficit is expected to hit $878 billion by 2040 and the future holds opportunities for renewable energy, energy efficiency, infrastructure, food, agriculture and the task ahead is to ensure funds are channelled to green projects with multiple socio-merits. The Commission will continue to promote an active enabling and regulative environment for the issuance of this instrument.”
Uduk who was represented by Head, Registration and Market Infrastructure Department, SEC, Emomotimi Agama, said the second tranche of the green bonds which has been issued, presents an opportunity for the country to address its infrastructure needs.
Uduk, said the issuance of the first N10 billion tranche of the green bond received an excellent A+ rating from the global rating agency, Moody.
Also speaking, Chief Executive Officer, FMDQ OTC Securities Exchange, Bola Onadele, represented by Senior Vice President, Economic Development division at the Exchange, Emmanuel Etaderhi, said that $155 billion has been raised globally from green bonds issuance, thereby gaining attention of investors.
Etaderhi noted that the country’s resources is not growing in tandem with the rising population while adding that the reason for Nigeria’s woeful performance in the power and energy sector is due to its inability to tap into solar energy like other European countries.
According to him, the challenges affecting green bonds include low level of local participation in green bond verifiers, lack of investible projects, cost of verification and lack of understanding on the part of key investors.