Energy infrastructures financing in developing countries and project finance (Nigeria energy sector)

Nasir Abimbola Kolade

Research output: Contribution to conferencePaper

Abstract

This paper discusses the challenges developing countries faced in financing energy infrastructures. Energy infrastructures development in most developing countries (such as Nigeria and other West Africa countries) through other finance sources ( corporate finance , Government budgets, multilateral and bilateral institutions) have not been sufficient to provide the finances needed to catalyse the socio-economic development of those developing countries.

The study critically examined the usage of project finance as an alternative source of financing energy projects in developing countries. Systematic literature review and data from World Bank, Africa Development Bank International Monetary Fund and Nigeria Government sources were analysed which showed the gap in energy accessibility /economic wellbeing and also revealed that financing energy infrastructures required high capital outlay mostly in hundreds of millions of dollars and the developing countries cannot afford the funding needed.

Furthermore, the research argues that project finance is an attractive option (values added financing sources that foster economic sustainability), because this financing sources does not necessarily consider assets or creditworthiness of project sponsors or collateral assets before agreeing to fund the projects such as energy infrastructures.
Original languageEnglish
Pages24-24
Number of pages1
Publication statusPublished - 12 Nov 2015
EventAnnual Conference of Centre for African Research on Enterprise and Economic Development (CAREED) : Africa: Proud History, Promising Future - University of the West of Scotland, Paisley PA1 2BE , Paisley, Glasgow , United Kingdom
Duration: 12 Nov 201513 Nov 2015
Conference number: 1

Conference

ConferenceAnnual Conference of Centre for African Research on Enterprise and Economic Development (CAREED)
Abbreviated titleCAREED
Country/TerritoryUnited Kingdom
CityPaisley, Glasgow
Period12/11/1513/11/15

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