President Muhammadu Buhari has approved the establishment Infra-Co with an initial seed capital of N1 trillion.
According to a statement issued by Bashir Ahmad, Personal Assistant on New Media to President Buhari, the styled Infrastructure Company, wholly focused on critical infrastructural investments in Nigeria will be set up under a Public-Private Partnership with an initial seed capital of N1 trillion.
While leveraging innovative financial strategies to pull in private sector investment, the entity is envisaged to grow to N15 trillion in assets and capital, over time.
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President @MBuhari has approved the establishment of a Public Private Partnership styled Infrastructure company named Infra-Co with an initial seed capital of N1 Trillion. Envisaged the entity will grow to N15 Trillion in assets and capital, over time, a statement from VP Office. pic.twitter.com/AituzT5YmO
— Bashir Ahmad (@BashirAhmaad) February 12, 2021
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Why this matters: The infrastructure company is expected to facilitate the development of critical infrastructure across the country. This move will help to bridge the nation’s infrastructure deficit, and provide a firm core for increasing national economic productivity and infrastructural growth.
In case you missed it: President Buhari earlier disclosed that InfraCo which is wholly focused on critical infrastructural investments in Nigeria will raise funding from the Central Bank of Nigeria, Nigeria Sovereign Investment Authority, Pension funds, and local and foreign private sector development financiers.
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What you should know
- President Buhari, in a follow-up tweet on Twitter, disclosed that Infra-Co will be one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development.
- The entity which was developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria, is expected to raise its initial funding of N1 trillion from the Central Bank of Nigeria, Nigeria Sovereign Investment Authority, Pension Funds, and Africa Finance Corporation, same with Subsequent funding which will be extended to local and foreign private sector development financiers.
- Buhari noted that the board of the Infra-Co will be chaired by the CBN Governor, while the board will include the MD of NSIA; President of Africa Finance Corporation, representatives of Nigerian Governors Forum and Ministry of Finance, and three independent directors from the private sector.
- The Infra-Co will finance public asset development, facilitate infrastructure rehabilitation and reconstruction and also drive investments in cutting-edge infrastructure projects for roads, rail, power and other key sectors.