Africa may soon unveil a groundbreaking financing framework designed to accelerate infrastructure development across the continent, according to Mr. Farooq Oreagba, Managing Director of NG Clearing and a leading financial markets expert.
Speaking on the sidelines of the IMF/World Bank Annual Meetings, Oreagba revealed that he and a group of financial professionals have been in active discussions with key institutions, including the African Development Bank (AfDB), to craft alternative funding structures capable of mobilising large-scale capital for Africa’s infrastructure needs.
“As you know, Africa has a huge infrastructure gap, and doing the same thing repeatedly will not yield new results,” Oreagba explained. “My colleagues and I have been working on alternative ways of raising finance to help cover this gap. We’ve had promising discussions with the AfDB, even before this conference, and came up with a solution that the President is very excited about. We’ll be meeting him again to finalise the details.”
Oreagba said the new financing model proposes a structural shift in how multilateral lenders deploy capital. Under this system, development institutions could provide loans without recording them on their balance sheets, freeing up capacity to lend much more than current frameworks allow.
He described the concept as potentially transformative:
“Normally, loans from multilaterals sit on their balance sheets, which limits their lending capacity. But with this structure, they can lend without that constraint, allowing them to leverage and extend significantly larger sums — possibly two or three times more. Combined with PPP-type arrangements and private sector participation, it could channel billions more into African economies.”
The proposal aligns with broader continental efforts to attract private investment into infrastructure, a sector often constrained by limited fiscal space and high borrowing costs. Analysts say such innovation could provide a template for sustainable development financing at a time when global attention is turning toward Africa’s growth potential.
On Nigeria’s recent reform momentum, Oreagba noted that global recognition from institutions like the IMF and World Bank is encouraging but stressed that such confidence must translate into measurable benefits for citizens.
“It’s important that these positive signals are reflected in improved living standards and real economic impact,” he said, underscoring the link between macroeconomic reforms and tangible progress on the ground.
If implemented successfully, the proposed financing model could mark a turning point in Africa’s development journey, enabling governments to deliver critical infrastructure while preserving fiscal stability and attracting greater private sector involvement.