The Central Bank of Nigeria (CBN) has reportedly appointed KPMG LLP as transaction adviser for its newly set up infrastructure fund, according to an insider familiar with the matter who wants to remain anonymous.
According to a report from Bloomberg, the person who did not want to be mentioned because the information is still under wrap said the apex bank appointed KPMG after the consideration of bids by other firms which include PricewaterhouseCoopers LLP, Boston Consulting Group and McKinsey & Co.
The CBN had in August 2020, secured the approval of the Federal Government to set up a $39.4 billion infrastructure development company in collaboration with the Sovereign Wealth fund and African Finance Corporation to invest in the country’s critical infrastructure and transport network.
The company which is to be exclusively managed by an Independent Infrastructure Fund Manager is expected to leverage local and international funds, is projected to cover an initial 5-year period.
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What you should know
- President Muhammadu Buhari had last month approved N1 trillion ($2.5 billion) of seed capital for the Infrastructure Corp. of Nigeria Ltd., which the CBN and its partners initiated last year. The fund has been established to raise as much as N15 trillion naira for power, road and railway projects in Africa’s largest economy.
- The Federal Government, last month began the process of engaging an asset manager for its newly set up Infrastructure Company of Nigeria Ltd. (Infra-Co), to raise funds for projects and accelerate growth in the country.
- This was further extended on Monday by 2 weeks to March 30, according to a notice published on CBN’s website.
- Nigeria is trying to boost investment in infrastructure to stimulate economic growth after exiting its second recession in 4 years in the fourth quarter. The country needs at least $3 trillion over 30 years to close its infrastructure gap, according to Moody’s Investors Service.