InfraCredit, Nigeria’s specialised infrastructure credit guarantee institution, has secured accreditation from the Green Climate Fund (GCF), opening a direct channel to international climate financing for low-emission and climate-resilient infrastructure projects.
The accreditation, approved at the GCF’s 46th Board Meeting on October 28, allows InfraCredit to develop and submit climate finance proposals directly to the fund, potentially expanding access to concessional capital for infrastructure investments while mobilising domestic institutional investors.
The development comes as Nigeria faces substantial financing constraints in deploying climate solutions, with high project risks and limited access to long-term funding restricting investment in renewable energy, sustainable transport and climate-resilient infrastructure.
As a Direct Access Entity, InfraCredit can originate funding proposals in partnership with domestic project sponsors, financial institutions and other stakeholders, linking international climate finance with local capital markets and reducing dependence on foreign-currency borrowing for projects with naira-denominated revenues.
Achala Abeysinghe, director of the GCF’s Department of Investment Services, said the accreditation would create an avenue for credit enhancement to unlock long-term investment in climate-resilient infrastructure in Nigeria.
“We are pleased to welcome the accreditation of Infrastructure Credit Guarantee Company Plc. This opens a new avenue in Africa to use credit enhancement to unlock long-term investment in low-emission, climate-resilient infrastructure in Nigeria,” Abeysinghe said.
“The partnership reflects GCF’s commitment to using innovative financial solutions to reduce risk, mobilise private capital and expand the pipeline of bankable climate investments.”
InfraCredit has facilitated more than N650 billion ($500 million) in guaranteed debt, enabling domestic institutional investors to finance infrastructure projects through Nigeria’s debt capital market.
The institution has also expanded beyond credit guarantees to incorporate project preparation, concessional capital, construction bridge finance and risk-sharing arrangements with development partners to address investment barriers.
Through its Climate Finance Blending Facility, established with first-loss capital from the UK government through the Foreign, Commonwealth & Development Office and British International Investment, InfraCredit combines concessional finance with credit enhancement to mobilise domestic investment in distributed renewable energy.
The GCF accreditation is expected to provide an additional avenue to expand this financing model and connect international climate capital with InfraCredit’s existing infrastructure financing platform and eligible project pipeline.
Chinua Azubike, chief executive officer of InfraCredit, said the accreditation builds on the institution’s experience mobilising long-term local-currency capital and combining credit enhancement with concessional financing to address infrastructure investment barriers.
“Accreditation further expands our access to international climate finance, creating opportunities to scale this financing model and mobilise additional domestic capital for low-emission and climate-resilient infrastructure,” Azubike said.
The accreditation covers six climate-impact areas, including energy generation and access, transport, infrastructure and the built environment, food and water security, livelihoods, and buildings, cities and industries.
These areas provide opportunities for InfraCredit to develop programmes beyond renewable energy generation, including energy-efficient buildings, sustainable transport, productive-use renewable energy and infrastructure supporting the resilience of essential services.
The GCF accreditation followed an assessment of InfraCredit’s institutional capacity, including financial management, governance, environmental and social safeguards, integrity and gender-related systems.
However, individual funding proposals will still be subject to the fund’s assessment and approval processes before financing can be secured.
Wasiu Alli is a business, economics cum data journalist with strong expertise covering macro trends, capital markets, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. He’s an alumnus of Lagos State University and trained at Lagos Business School. He formerly heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.
