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Economy & Politics

CBN to set up $39.4 billion infrastructure development company with AFC, NSIA

This entity will be co-owned by the CBN, AFC and the NSIA.

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The Central Bank of Nigeria (CBN) has secured the Federal Government’s approval to set up a $39.4 billion (N15 trillion) infrastructure development company in collaboration with the Sovereign Wealth Fund, to invest in the country’s critical transport network.

The venture, which is expected to leverage local and international funds, are projected to cover an initial 5-year period.

The disclosure is part of the statement made by the CBN Governor, Godwin Emefiele, during the last Monetary Policy Committee (MPC) meeting on July 20, 2020.

READ MORE: FX utilization fell to its worst on record in April

This entity, which will be wholly focused on Nigeria and Nigerians alone, will be co-owned by the CBN, African Finance Corporation (AFC), and the Nigeria Sovereign Investment Authority (NSIA).

However, it will be exclusively managed by an Independent Infrastructure Fund Manager (IIFM) that will mobilize local and foreign capital to support the Federal Government in building the transport infrastructure required to move agriculture and other products to processors, raw materials to factories, and finished goods to market.

READ ALSO: CBN says 22 banks to restructure over 35,000 loans due to COVID-19

The MPC also noted, albeit with satisfaction, the CBN’s immediate work on the updates and timelines for the establishment of this much-needed entity.

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Experts have pointed out that the poor state of infrastructure and the huge infrastructure deficit seriously puts at risk, the current administration’s plans to industrialize the country and establish a vibrant agricultural sector to encourage economic growth.

READ MORE: FEC reviews Ajaokuta-Kaduna-Kano gas project contract, approves $2.571 billion

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This initiative is to help fix the nation’s dilapidating road network and railway lines to tackle decades of decay that has stunted economic growth and made it difficult to move agricultural products from the rural areas or farms to processing plants and finished goods to the markets.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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    Business News

    Financial Autonomy: Governors, State Speakers reach agreement

    The Governor also said that the final document of the agreement should be ready for implementation by May 2021.

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    The Governors’ Forum, Conference of Speakers of State Legislature and other governance stakeholders announced that they reached a resolution over the implementation of financial autonomy for State Legislature and Judiciary.

    This was disclosed by the Ekiti State Governor and Chairman Nigeria Governors’ Forum, Kayode Fayemi, after the meeting, which was held in Abuja on Monday, and presided by the Chief of Staff to the President, Prof. Ibrahim Gambari.

    What the Governor said

    “We are here for legislative and judicial autonomy and Governors; Speakers of State Assemblies and the Judges of the States are on the same page as far as this issue is concerned,” he said.

    We just emerged from a meeting with the Solicitor General of the Federation, the representatives of the judiciary and those of the Conference of Speakers and we are all in force; an agreement has been reached.

    READ: Finance Minister tasks FG and state governments to control spending

    The issue is about implementation. There has been no objection from governors on judicial and legislative autonomy.

    As a matter of fact, it would not have passed if governors were not in support in the first instance. So, that issue has been fully and holistically addressed,” Fayemi said.

    The Governor also said that the final document of the agreement should be ready for implementation by May 2021 and urged striking workers  to return  to offices “because as far as this has gone, we have met with all the parties concerned and the President, through his Chief of Staff, has been monitoring what has been happening.”

    What you should know

    Nairametrics reported earlier this month that members of the Judiciary Staff Union of Nigeria (JUSUN) went on strike with the closure of Federal High Courts in different states across the nation. The union said the purpose of the strike was to draw attention to the financial autonomy of Nigeria’s Judiciary.

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    Business

    Finance Minister tasks FG and state governments to control spending

    The Minister also denied claims that the FG printed N60 billion as top-up for March FAAC numbers.

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    The Minister of Finance, Zainab Ahmed, has called on Governments on all levels in Nigeria to control spending amid decreasing revenues and urged for prudent government spending. The Minister also denied claims that the Federal Government printed N60 billion as top-up for March FAAC numbers.

    The Minister disclosed this in an interview on Monday and warned that the FG was not generating enough revenue to align with its spending habit.

    READ: UK to return £4.2million seized from Ibori to Nigeria

    Zainab Ahmed added that the FG would maintain its stance from January 2021 to end total fuel subsidies in Nigeria, and confirmed talks with organised labour on subsidy removal.

    “As a nation, the Federal, State and Local governments must review expenditure patterns. We are spending too much and we are not generating enough,” she said.

    READ: Resolving the global debt and liquidity crises, issues and possible solutions

    What you should know 

    Nairametrics reported last month that the Debt Management Office had announced that Nigeria’s public debt at end of 2020 was N32.915 trillion. The DMO said the sum of the debt included the Debt Stock of the Federal and State Governments, as well as the Federal Capital Territory.

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