Project Bankability and Risk Assessment in Nigeria: Sponsor’s Checklist

A project bankability assessment asks whether a defined project can support a credible financing proposal under realistic assumptions. It is different from an insurance underwriting decision, an investment recommendation or a funding commitment. Wigmore Trading accepts business-support, equipment-sourcing and logistics enquiries connected with project preparation. Financial, technical, legal and environmental opinions require appropriately qualified specialists.

Define the project and its stage

Identify the sponsor, location, intended output, development stage and funding purpose. State which rights, permits, contracts and feasibility work are already in place and which remain conditional. A project description should distinguish an early concept from a procurement-ready development. Do not present a preliminary opportunity as a fully approved or funded project.

Sector-specific risks must remain visible

Solar and power projects may depend on offtake and operating assumptions; oil, gas and mining projects have different technical and authorisation requirements. Agricultural projects need realistic seasonal and supply assumptions. Transport, ports, airports, data centres, healthcare and education developments have their own demand and operating dependencies. Use competent sector specialists rather than applying a single generic model to every asset.

Review cash flow and debt capacity

Separate capital costs, operating costs, working capital, financing and taxes. Check timing as well as totals. Test lower revenue, delayed completion, higher costs and other material uncertainties. A project-return analysis should state the assumptions and whose return is being measured. Debt capacity needs assessment by the responsible financial professionals and prospective financiers; an attractive spreadsheet is not loan approval.

Assess contractors and completion interfaces

Ask who is responsible for design, equipment, construction, commissioning and acceptance. Compare proposals on a common scope and record exclusions and dependencies. Imported equipment may introduce logistics, installation and support requirements that affect both cost and schedule. Wigmore can help scope procurement and logistics enquiries, while qualified teams retain technical selection and acceptance decisions.

PPP and concession projects

Public-private partnership preparation involves project authority, commercial structure and an applicable approval process. The ICRC’s explanatory information discusses business cases and bankability in the Nigerian PPP context. Qualified advisers should determine the pathway for the particular project and jurisdiction. A feasibility study, government discussion or concession concept does not itself establish financial close.

Investment committee and lender information

A useful review pack separates verified facts, forecasts, assumptions and outstanding conditions. Record the source and date of each material input. Identify issues requiring specialist opinions and proposed mitigations without disguising residual risk. The final investment or lending decision belongs to the authorised decision-maker, using its own mandate and policies.

Discuss project preparation with Wigmore

Send a non-confidential project summary, location, stage, target dates and the support required. Tell us whether you need equipment quotations, sourcing, logistics planning or help organising a preparatory brief. We can confirm the available business-support scope and specialist dependencies. An enquiry does not guarantee bankability, finance, investor interest or regulatory approval.