The Niger Delta Economic and Investment Summit, held in Port Harcourt, has paved the way for the introduction of blue, green, and rail bonds in the region. According to Chamberlain Peterside, Director-General of the Rivers State Investment Promotion Agency, these bonds will be used to fund strategic projects in the region. Peterside, who was an anchor person for one of the summit's sessions, explained that blue bonds will be used for projects related to the blue economy, while green bonds will be used for environmentally and socially conscious investments.
The rail bond, which is currently at the drawing board, has been accepted by the BRACED Commission and the South-South Governors Forum. Kalada Apiafi, a development expert and founder of Wider Perspectives Ltd, is behind the rail project, which is targeting the capital market. Apiafi stated that the project is currently at the feasibility report stage, which will lead to cost evaluation before the funding stage. The rail project aims to improve transportation infrastructure in the region.
Idaere Gogo-Ogan, chairman of the Niger Delta Chamber of Commerce, Industry, Mines, Trade, and Agriculture, and convener of the summit, emphasized that bond issuance is the best option for funding projects in the region. He noted that private capital is the new way to go, and that the region needs to explore innovative financing mechanisms to develop its infrastructure. Gogo-Ogan's comments were made during the closing briefing of the summit.
Peterside, who has experience in bond issuance, having been behind Rivers State's initial N100bn bond, noted that the oil states will have to put their balance sheet against a bond. He explained that states can put a project forward, conduct bankability studies and feasibility studies, and then use the bond to fund the project. Peterside also hinted that he has had talks with the CEO of Pioneer Air, which has adopted the Port Harcourt Airport as its hub.
Emomotimi Agama, director-general of the Securities and Exchange Commission (SEC), told leaders from the oil region that the capital market is crucial for economic development. He noted that various projects, including those in agriculture, roads, and schools, can be developed with bonds. Agama emphasized that the states cannot grow their economy without capital market money, and that the region needs about N30 trillion to develop enough infrastructure.
The SEC director-general also noted that a legal framework, institutional investors, instruments for investment, and independent credit opinion (rating) are necessary to promote transparency in bond issuance. He stated that green and blue projects could be located around Opobo, Bonny, and other areas of the Niger Delta. Peterside also mentioned that a development bank for the Niger Delta and access to the capital market are critical issues that need to be addressed.
The introduction of blue, green, and rail bonds in the Niger Delta region is expected to provide a new source of funding for strategic projects. The region's leaders believe that this will help to drive economic growth and development in the area. Key stakeholders, including Peterside, Apiafi, and Agama, are optimistic that the bond issuance will be successful and have a positive impact on the region's economy.
Key points
- The Niger Delta region plans to issue blue, green, and rail bonds to fund strategic projects.
- The bonds will be used to fund projects related to the blue economy, environmentally and socially conscious investments, and railway infrastructure.
- The region needs about N30 trillion to develop enough infrastructure, and the capital market is seen as a key source of funding.
