President Muhammadu Buhari has announced his approval of the establishment of Infraco Plc, a world-class infrastructure development vehicle wholly focused on Nigeria with a capital structure of N15 trillion.
The establishment of the company is to help address the infrastructural deficits and challenges in the country and ultimately transform the economy.
This was made known by the President in a broadcast to mark this year’s Democracy Day on Saturday, June 11, 2021.
This is also as President Buhari said that his administration had succeeded in accelerating infrastructure development through sensible and transparent borrowing, improved capital inflow, improving and increasing revenue through capturing more tax bases and prudent management of investment proceeds in the Sovereign Wealth Fund.
While outlining some of the administration’s achievements in the rail sector, Buhari pointed out that the Itakpe-Warri standard gauge rail was completed and commissioned 33 years after construction began in addition to the Lagos-Ibadan double-track railway line, which he inaugurated on June 10, 2021, and which had already commenced operations.
What President Buhari is saying
Buhari in his speech said:
“We are focused on ensuring that our infrastructure drive is key to economic growth and one that can be felt by every Nigerian. Building critical infrastructure in our ports is also opening up opportunities for the Nigerian economy.
My approval for four new seaports using a Public-Private-Partnership approach is hinged on growing the Nigerian economy. These four sea ports; Lekki Deep Sea Port, Bonny Deep Sea Port, Ibom Deep Sea Port and Warri Deep Sea port, will create massive job opportunities and foreign investment inflows.
We have worked at deepening our Eastern ports leading to success like having three container ships berth at Calabar port, a first in 11 years. Similarly, on October 30, 2019, an LPG tanker operated by NLNG berthed in Port Harcourt, the first time an LPG ship is berthing at any of the Eastern Ports.
As we invest in these new assets, we have also made strides in ensuring that they are secured and protected. In this regard, I am also pleased to note the launch of the NIMASA Deep Blue project – which is an Integrated National Security and Waterways Protection Infrastructure that I recently commissioned.
This initiative is designed to add to the layer of security we have to safeguard our maritime sector.”
What you should know
It can be recalled that in November 2020, the Federal Government had announced plans for the establishment of an infrastructure company that would be wholly focused on critical infrastructural investments in the country.
The infrastructure company which is expected to raise funds for this responsibility from the Central Bank of Nigeria (CBN), the Nigeria Sovereign Investment Authority (NSIA), Pension Funds, as well as local and foreign private sector development financiers, will have a seed capital of N1 trillion from the government.
The Federal Government also in February disclosed plans to engage an asset manager for the new Infrastructure Company of Nigeria Ltd. (Infra-Co).
