Post by Trade facilitator on Aug 17, 2021 12:51:56 GMT 1
Nigeria’s N15 Trillion Infrastructure Company To Start Operation In 3rd Quarter Of 2021- CBN Governor, Emefiele
The Federal Government of Nigeria (FGN) has revealed through the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele that the country’s N15 trillion Infrastructure Corporation of Nigeria (Infraco) Plc would commence full operation by the 3rd quarter of 2021.
This is coming up after the Federal Government has approved the selection of four (4) asset managers for the infrastructure funds.
The Governor disclosed this recently at an investors’ webinar organized by the Bureau of Public Enterprises, in conjunction with the Nigerian Exchange Group (NXG), and the Nigerian Investment Promotion Commission, according to information from the News Agency of Nigeria (NAN).
What is the function of an Infrastructure Company?
Going back to September 2020, the Central Bank of Nigeria (CBN) disclosed that is was going to establish an Infrastructure company to be known as Infra-Corp through which the country will attract investment massively into the country in order to accelerate economic growth.
The CBN Governor, Godwin Emefiele, disclosed this at the 13th Annual Banking and Finance Conference in Abuja in September, 2020.
According to the Governor, the company is to be established in collaboration with the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA).
This will be a pool of both public and private funds for infrastructure investments in the country.
He said that due to decline in revenues to both the Federal and State governments as a result of drop in oil prices, the government has to look for ways of funding infrastructure so as to generate sustained economic growth in our country.
The Governor said “A well-built infrastructure system, comprising hard infrastructure such as roads, ports, and soft infrastructure such as broadband penetration, can have multiplier effect on growth by enabling the expansion of business activities in the country.
The entity would also be able to raise funds from the capital markets and mobilize long term finance to address some of our infrastructure needs while providing reasonable returns to investors.”
He also said that “Work has indeed attained an advanced stage and we have received the approval of the Chairman of the Steering Committee, the Vice President, Prof. Yemi Osinbajo, for the approval of the appointment of KPMG as the transaction advisers and only recently also obtained approval for the appointment of asset managers.
We believe that through a partnership with the private sector, Infraco will be able to leverage close to N15 trillion over the coming years to close the country’s infrastructure gap.
The CBN Governor said that investment in rail, road infrastructure, manufacturing, agriculture and other areas with significant potential to transform the growth trajectory of the nation’s economy.”
These firms are the asset managers selected for the Infraco
The acting Director Corporate Communications of CBN, Osita Nwanisobi, in a statement, said that Nigeria’s Vice President, Yemi Osinbajo, had approved the hiring of the fund managers for the company.
According to reports from Bloomberg, the selected asset managers include Netherlands-based Salam Infraworks; AIIM, a unit of South Africa’s Old Mutual Group; Lagos-based Chapel Hill Denham; and Tripple A, a consortium comprising AfricaPlus Parners and Arc Asset Management as well as Afrinvest West Africa, a Nigeria Investment bank.
The Infrastructure Company is expected to raise funds to execute the jobs of bridging the critical infrastructural gaps existing in the economy of the nation.
The funds are expected to be raised from; the Central Bank of Nigeria (CBN), the Nigerian Sovereign Investment Authority (NSIA), African Finance Corporation (AFC), Pension Funds, as well as local and foreign private sector development financiers.
The Central Bank of Nigeria (CBN), in March 2021 appointed KPMG LLP as transaction adviser for the newly-created Infrastructure Corporation of Nigeria Limited (Infracorp).
One of the most important policy statements made by the CBN Governor, Godwin Emefiele on this project is that the fund will be used to support the Federal Government in building the transport infrastructure required to move agriculture products to processors, raw materials to factories and finished goods to markets.
We are keeping our fingers crossed, awaiting the implementation of the project.
Stay with us for more on this as we will keep tracking the development as it unfolds.
The Federal Government of Nigeria (FGN) has revealed through the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele that the country’s N15 trillion Infrastructure Corporation of Nigeria (Infraco) Plc would commence full operation by the 3rd quarter of 2021.
This is coming up after the Federal Government has approved the selection of four (4) asset managers for the infrastructure funds.
The Governor disclosed this recently at an investors’ webinar organized by the Bureau of Public Enterprises, in conjunction with the Nigerian Exchange Group (NXG), and the Nigerian Investment Promotion Commission, according to information from the News Agency of Nigeria (NAN).
What is the function of an Infrastructure Company?
Going back to September 2020, the Central Bank of Nigeria (CBN) disclosed that is was going to establish an Infrastructure company to be known as Infra-Corp through which the country will attract investment massively into the country in order to accelerate economic growth.
The CBN Governor, Godwin Emefiele, disclosed this at the 13th Annual Banking and Finance Conference in Abuja in September, 2020.
According to the Governor, the company is to be established in collaboration with the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA).
This will be a pool of both public and private funds for infrastructure investments in the country.
He said that due to decline in revenues to both the Federal and State governments as a result of drop in oil prices, the government has to look for ways of funding infrastructure so as to generate sustained economic growth in our country.
The Governor said “A well-built infrastructure system, comprising hard infrastructure such as roads, ports, and soft infrastructure such as broadband penetration, can have multiplier effect on growth by enabling the expansion of business activities in the country.
The entity would also be able to raise funds from the capital markets and mobilize long term finance to address some of our infrastructure needs while providing reasonable returns to investors.”
He also said that “Work has indeed attained an advanced stage and we have received the approval of the Chairman of the Steering Committee, the Vice President, Prof. Yemi Osinbajo, for the approval of the appointment of KPMG as the transaction advisers and only recently also obtained approval for the appointment of asset managers.
We believe that through a partnership with the private sector, Infraco will be able to leverage close to N15 trillion over the coming years to close the country’s infrastructure gap.
The CBN Governor said that investment in rail, road infrastructure, manufacturing, agriculture and other areas with significant potential to transform the growth trajectory of the nation’s economy.”
These firms are the asset managers selected for the Infraco
The acting Director Corporate Communications of CBN, Osita Nwanisobi, in a statement, said that Nigeria’s Vice President, Yemi Osinbajo, had approved the hiring of the fund managers for the company.
According to reports from Bloomberg, the selected asset managers include Netherlands-based Salam Infraworks; AIIM, a unit of South Africa’s Old Mutual Group; Lagos-based Chapel Hill Denham; and Tripple A, a consortium comprising AfricaPlus Parners and Arc Asset Management as well as Afrinvest West Africa, a Nigeria Investment bank.
The Infrastructure Company is expected to raise funds to execute the jobs of bridging the critical infrastructural gaps existing in the economy of the nation.
The funds are expected to be raised from; the Central Bank of Nigeria (CBN), the Nigerian Sovereign Investment Authority (NSIA), African Finance Corporation (AFC), Pension Funds, as well as local and foreign private sector development financiers.
The Central Bank of Nigeria (CBN), in March 2021 appointed KPMG LLP as transaction adviser for the newly-created Infrastructure Corporation of Nigeria Limited (Infracorp).
One of the most important policy statements made by the CBN Governor, Godwin Emefiele on this project is that the fund will be used to support the Federal Government in building the transport infrastructure required to move agriculture products to processors, raw materials to factories and finished goods to markets.
We are keeping our fingers crossed, awaiting the implementation of the project.
Stay with us for more on this as we will keep tracking the development as it unfolds.
