Post by Trade facilitator on Mar 14, 2021 12:51:58 GMT 1
The President Approves The Establishment Of Infra-Co With Initial Seed Capital Of N1Trillion
The President of the Federal Government of Nigeria (FGN), Muhammadu Buhari has approved an initial seed capital of N1 Trillion to flag off the establishment of Nigeria Infrastructure Company (Infra-Co).
This is according to a statement issued by his Personal Assistant on New Media, Bashir Ahmad.
The Infrastructure Company is a company wholly structured to be completely focused on critical infrastructure investments in Nigeria, which is set up under a Public-Private Partnership with an initial seed capital of N1 trillion.
The plan is that the company will grow to N15 trillion in assets and capital in the long run by leveraging innovative financial strategies to attract private sector investments.
The government is aware of critical infrastructure deficit in the country; it is therefore innovative and highly recommended in order to close the deficit within the shortest possible time. This move will surely help the nation bridge the infrastructural shortage and at the same time provide required funding to energize national economic productivity and infrastructural growth.
This is the only type of economic activity that can make the country come out of the present economic quagmire. The present economic outlook shows that the country consumes more than it earns, a situation that can spell doom if allowed to continue for a long time.
The President in an earlier information disclosed that the Infrastructure Company which is wholly focused on Critical Infrastructure investments in Nigeria will mobilize funding from the Central Bank of Nigeria, Nigerian Sovereign Investment Authority, Pension Funds, and Local and Foreign private sector development financiers.
From the foregoing, the aggregate funding from all these sources will be for a long enough period to allow the investments from the funds to be deployed to start yielding returns to be used in paying back to investors.
The President in a follow-up tweet disclosed that the infrastructure company will be one of the first infrastructure companies in Africa and as has been earlier noted will be wholly dedicated to Nigeria’s infrastructure development.
He noted that the entity was developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria (CBN). It is expected to mobilize its initial funding of N1 trillion from the CBN, Nigeria Sovereign Investment Authority, Pension Funds and Africa Finance Corporation.
Subsequent funding is expected to come from local and foreign private sector development financiers.
The statement revealed that the Board of the Infrastructure Company will be chaired by the Central Bank Governor, while they will also include the MD of NSIA, President Africa Finance Corporation, representatives of Nigeria Governors Forum, Ministry of Finance, and independent Directors from the private sector.
The Company will finance public asset development, facilitate infrastructure rehabilitation and reconstruction and also drive investments in cutting-edge infrastructure projects for roads, railways, power and other key sectors, the president revealed.
This step the President is taking to urgently reduce the infrastructure deficit in the country is a welcome development that is almost overdue.
The most important aspect of this development is the tapping of private sector funding which is more predictable and without excessive political maneuvering.
Nigeria’s growing infrastructure deficit is a major concern among economic experts both at home and abroad. Poor infrastructure is one of the biggest obstacles militating against smooth running of businesses in the country. It also limits capital inflow into the country.
Poor infrastructure has been the bane of development that is limiting the blossoming of the largest economy in Africa. The country’s vast natural, human and capital resources are lying fallow due to this malaise.
Nigeria’s infrastructure stock of c.25% of GDP remains far below the international benchmark of 70%. This is why the government operatives need to take unconventional methods of financing to bridge the huge infrastructural deficit.
The President of the Federal Government of Nigeria (FGN), Muhammadu Buhari has approved an initial seed capital of N1 Trillion to flag off the establishment of Nigeria Infrastructure Company (Infra-Co).
This is according to a statement issued by his Personal Assistant on New Media, Bashir Ahmad.
The Infrastructure Company is a company wholly structured to be completely focused on critical infrastructure investments in Nigeria, which is set up under a Public-Private Partnership with an initial seed capital of N1 trillion.
The plan is that the company will grow to N15 trillion in assets and capital in the long run by leveraging innovative financial strategies to attract private sector investments.
The government is aware of critical infrastructure deficit in the country; it is therefore innovative and highly recommended in order to close the deficit within the shortest possible time. This move will surely help the nation bridge the infrastructural shortage and at the same time provide required funding to energize national economic productivity and infrastructural growth.
This is the only type of economic activity that can make the country come out of the present economic quagmire. The present economic outlook shows that the country consumes more than it earns, a situation that can spell doom if allowed to continue for a long time.
The President in an earlier information disclosed that the Infrastructure Company which is wholly focused on Critical Infrastructure investments in Nigeria will mobilize funding from the Central Bank of Nigeria, Nigerian Sovereign Investment Authority, Pension Funds, and Local and Foreign private sector development financiers.
From the foregoing, the aggregate funding from all these sources will be for a long enough period to allow the investments from the funds to be deployed to start yielding returns to be used in paying back to investors.
The President in a follow-up tweet disclosed that the infrastructure company will be one of the first infrastructure companies in Africa and as has been earlier noted will be wholly dedicated to Nigeria’s infrastructure development.
He noted that the entity was developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria (CBN). It is expected to mobilize its initial funding of N1 trillion from the CBN, Nigeria Sovereign Investment Authority, Pension Funds and Africa Finance Corporation.
Subsequent funding is expected to come from local and foreign private sector development financiers.
The statement revealed that the Board of the Infrastructure Company will be chaired by the Central Bank Governor, while they will also include the MD of NSIA, President Africa Finance Corporation, representatives of Nigeria Governors Forum, Ministry of Finance, and independent Directors from the private sector.
The Company will finance public asset development, facilitate infrastructure rehabilitation and reconstruction and also drive investments in cutting-edge infrastructure projects for roads, railways, power and other key sectors, the president revealed.
This step the President is taking to urgently reduce the infrastructure deficit in the country is a welcome development that is almost overdue.
The most important aspect of this development is the tapping of private sector funding which is more predictable and without excessive political maneuvering.
Nigeria’s growing infrastructure deficit is a major concern among economic experts both at home and abroad. Poor infrastructure is one of the biggest obstacles militating against smooth running of businesses in the country. It also limits capital inflow into the country.
Poor infrastructure has been the bane of development that is limiting the blossoming of the largest economy in Africa. The country’s vast natural, human and capital resources are lying fallow due to this malaise.
Nigeria’s infrastructure stock of c.25% of GDP remains far below the international benchmark of 70%. This is why the government operatives need to take unconventional methods of financing to bridge the huge infrastructural deficit.
