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Read time: ~7 min Standfirst: Nigerian infrastructure assets routinely borrow in dollars and earn in naira. The mechanism meant to bridge that gap, tariff indexation, works cleanly on paper and imperfectly in practice, and the gap between the two has become one of the defining risks in the country’s power sector. Understanding how indexation is
Read time: ~7 min Standfirst: Two power plants can sell into the same market under contracts that look similar on the surface, a fixed capacity, a negotiated tariff, and still carry entirely different revenue risk, depending on one clause: whether the offtaker pays for capacity made available, or only for energy actually delivered and consumed.
Take-or-Pay vs. Availability-Based Tariffs in Power and Gas Infrastructure Read More »
Read time: ~7 min Standfirst: When an EPC contractor joins an infrastructure consortium, the question that actually determines its exposure is not how much capital it commits, but where in the capital stack that capital sits. Senior debt, mezzanine debt, and sponsor equity are not just different pools of money, they carry different priority, different
Sponsor Equity vs. Mezzanine Tranches: Capital Stack Design for EPC-Led Consortia Read More »
Read time: ~7 min Standfirst: Two projects with identical revenue over a debt tenor can carry very different risk profiles depending on one modeling choice: whether debt repayment is flat or sculpted to match actual cash flow. In Nigerian infrastructure financing, where naira revenue routinely has to cover dollar-denominated debt, that choice is not cosmetic.
Read time: ~8 min Standfirst: A project finance term sheet is not a summary of the deal. It is the document that decides who actually controls the asset the day something goes wrong, and what a sponsor must prove, contract by contract, before a single dollar of debt is disbursed. For anyone evaluating consortium entry,
Read time: ~7 min Standfirst: Almost every Nigerian infrastructure deal marketed as “project financed” is, in practice, limited-recourse, not non-recourse. The distinction is not academic. It determines who absorbs a cost overrun, who a lender can chase when a DisCo defaults on payment, and whether a sponsor’s balance sheet is genuinely ring-fenced from the project’s
Non-Recourse vs. Limited-Recourse Structuring in Nigerian Infrastructure Deals Read More »