Chapel Hill Denham's Philip Southwell talks infrastructure financing in Nigeria

Nigeria's infrastructure financing landscape is brimming with potential, according to Philip Southwell, the Chairman of the Investment Committee at Chapel Hill Denham Management. In an exclusive interview with CNBC Africa's Wole Famurewa at the listing of Chapel Hill Denham Nigeria Infrastructure Debt Fund on the FMDQ OTC Securities Exchange, Southwell shed light on the vast opportunities in Nigeria's infrastructure sector. Southwell highlighted the country's sizable GDP, substantial pension fund capital, and significant infrastructure needs as key drivers for investment in the sector. Chapel Hill Denham has identified a substantial pipeline of infrastructure projects, both short-dated and long-dated, totaling hundreds of billions of Naira. Southwell emphasized the importance of financing projects in local currency to mitigate currency risk and ensure sustainable development. The fund aims to not only boost GDP growth but also act as a catalyst for infrastructure development in Nigeria. With the growing interest in emerging markets and the search for yield by global investors, Southwell anticipates an increase in foreign investment in local infrastructure funds like the NIDF. As the global economy evolves, Nigeria's well-structured economy and low debt levels make it an attractive destination for infrastructure investment, attracting capital away from traditionally overleveraged OECD markets. While the transition to local currency financing may take time, the momentum is building towards a paradigm shift in infrastructure investment. Southwell's insights provide a compelling outlook on the future of infrastructure financing in Nigeria, offering a glimpse of the transformative opportunities that lie ahead.