CBN Calls for Diversification of Infrastructure Financing

Malam Sanusi Lamido Sanusi, governor , Central Bank of Nigeria, on Monday called on the Federal Government to consider diversification in sourcing funds for infrastructure development.

Sanusi made the call at the 2nd Biennial Regional Conference of the West African Institute for Financial and Economic Management, held in collaboration with the CBN in Lagos.

He said the country could diversify by tapping into the international bond market, which he referred to as being “very liquid.”

Sanusi said that many international investors were interested in financing infrastructure in African countries.

He said that an option for the development of infrastructure was Diaspora funding, whereby funds remitted home by Nigerians abroad could be used to finance local infrastructure.

The CBN governor said that another option was Islamic finance, which he said, was a cheaper option.

Sanusi said the British prime minister announced last week that the government would issue 200 billion pounds bond to finance infrastructure in the United Kingdom.

He noted that the British Government was interested in achieving this through Islamic finance.

Sanusi said that governments in countries like South Africa, Kenya and Senegal had all tapped into the market.