Nigerian Infrastructure ETFs: A Growing Investment Opportunity

Aerial View of Roads
Credit: pexels.com, Aerial View of Roads

Nigerian Infrastructure ETFs offer a unique investment opportunity, with the country's infrastructure sector expected to grow significantly in the coming years.

The Nigerian government has set ambitious targets to boost infrastructure development, with plans to spend over $100 billion on projects such as roads, bridges, and energy.

Investors can tap into this growth through infrastructure ETFs, which provide a diversified portfolio of stocks related to infrastructure development.

These ETFs allow investors to gain exposure to a wide range of infrastructure-related companies, from construction and engineering firms to energy and transportation providers.

Nigerian Infrastructure ETFs

The Nigerian Infrastructure ETFs scene is about to get a boost with the listing of the Nigeria Infrastructure Debt Fund (NIDF) on the Nigerian Exchange Limited (NGX). This N200 billion fund is the first and only infrastructure debt fund dedicated to and domiciled in Nigeria.

NIDF aims to provide investors with regular and stable income by making primarily debt investments in infrastructure projects located in Nigeria. It has a remarkable record of zero non-performing loans from inception till date, thanks to an effective portfolio risk management strategy.

With a market capitalization of N92.54 Billion and a freefloat of c.95%, NIDF has achieved significant impact and economic returns, making it Nigeria's best performing fund over the last 5 years.

Recent Developments

Credit: youtube.com, Infrastructure Development Gets ₦1.025 Trillion Boost In 2025 Budget + More Dateline

The Nigerian Exchange Limited (NGX) has made a significant move by admitting the Nigeria Infrastructure Debt Fund (NIDF) onto the Exchange.

NIDF is a N200 billion public infrastructure investment fund by Chapel Hill Denham, making it the first and only infrastructure debt fund dedicated to and domiciled in Nigeria.

The listing of NIDF on NGX will provide investors with access to a diversified portfolio of asset-backed loans across multiple sub-sectors and geographical spread.

NIDF has achieved a market capitalization of N92.54 Billion, a freefloat of c.95%, and a remarkable record of zero non-performing loans from inception till date.

Chief Executive Officer, Chapel Hill Denham, Mr. Bolaji Balogun, stated that NIDF has been Nigeria's best performing fund over the last 5 years, delivering significant impact and economic returns.

The listing of NIDF on NGX will further enhance the visibility of the fund, giving investors access to more investment options and improving liquidity.

Through its listing, NIDF opens up the chance for investors to benefit from a diversified portfolio of asset-backed loans across multiple sub-sectors and geographical spread.

ETFs

Credit: youtube.com, Nigerian ETFs

ETFs are a type of security that's listed and traded on the stock exchange throughout the day. This means you can buy and sell them at any time, just like individual stocks.

An ETF is essentially a portfolio of securities that tracks an underlying index, giving you exposure to a variety of assets in one go. This can be a convenient way to diversify your investments.

Here's a breakdown of the types of funds you can find in the Nigerian market:

* Balanced FundsBond|Fixed Income FundsEquity FundsEthical FundsExchange Traded Funds (ETFs)Infrastructure FundsMoney Market FundsReal Estate FundsShari'ah Compliant FundsUSD Fixed Income Funds

Frequently Asked Questions

Is there a Nigerian ETF?

Yes, there is a Nigerian ETF market, with the Nigerian Exchange (NGX) being the leading market in West Africa and one of the largest in Africa. The NGX offers a range of listed products, including ETFs that track global, country-specific, and asset-specific indices.

What are the infrastructure projects in Nigeria?

The Ongoing PIDF projects in Nigeria include the Abuja-Kano Road, Second Niger Bridge, and Lagos-Ibadan Expressway. These projects are divided into multiple sections, such as the Abuja-Kano Road's three sections from Abuja to Kano.

Timothy Gutkowski-Stoltenberg

Senior Writer

Timothy Gutkowski-Stoltenberg is a seasoned writer with a passion for crafting engaging content. With a keen eye for detail and a knack for storytelling, he has established himself as a versatile and reliable voice in the industry. His writing portfolio showcases a breadth of expertise, with a particular focus on the freight market trends.

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