The Central Bank of Nigeria (CBN) has signed a binding agreement between the Infrastructure Corporation of Nigeria (InfraCorp) and the Independent Asset Managers to develop the country’s infrastructure.
The InfraCorp, which is a N15 trillion infrastructure fund with the federal government to provide N1 trillion seed capital, is expected to make finance available for critical capital projects across the country.
The signing ceremony took place at the CBN’s office at Tinubu Square, on Friday in Lagos, where the CBN Governor, Mr Godwin Emefiele, expressed joy that they had concluded the initial discussions on how they would operate together to deliver infrastructure to the country.
To raise N14 trillion in the first phase
Emefiele said, “Let me emphasise that today is a very important day. We have worked now for almost 18 months, trying to put this together.
“I am happy that we have reached the state where today we are signing the term sheets between InfraCorp and four assets managers.
“What is the purpose, the first phase of this financing is to raise N14 trillion debt plus N1 trillion equity which is being contributed by the CBN, AFC and NSIA upon signing the term sheets today.
” We will go straight into execution work because Nigeria very badly needs to develop its infrastructure.
“There are infrastructure deficit in the public and private sector and we will like to be seen that we play our part at this time to support the efforts of the government and that of the private sector to see to whatever can be done to develop the infrastructure of Nigeria.’’
InfraCorp opened for business, to be unveiled
- The asset managers for InfraCorp include the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers here in Nigeria, and Sanlam Infraworks.
- Emefiele, who is also the Chairman of the board of directors of InfraCorp, added that the company was open for business and would be unveiled to Nigerians.
InfraCorp to make use of pension funds
Emefiele said also that Nigeria’s pension funds, banking industry and Eurobonds would be used to develop the infrastructure of the country as done in emerging countries.
He said, “There’s a lot of liquidity that is being held by our pensions managers, I understand that from the last count that the size of Nigeria’s pension funds is over 13 trillion and I’m told in another three to five years, Nigeria pension assets will rise to almost 25 trillion naira.
“In other countries where infrastructure corporations have worked, pension funds money have been used to develop infrastructure of those countries.’’
He said also that the first phase of the projects would kick off in Lagos, Ibadan, Abuja, Kaduna and Kano and the second Niger Bridge.
What the CEO of InfraCorp is saying
The Chief Executive Officer of InfraCorp, Dr Lazarus Angbazo, said the term embodies a set of relationships and the partnership that would exist between the Infracorp and the assets managers.
He said, ”It is inclusive of the division of responsibilities, it clearly states what the rights and responsibilities of each party will be and it defines the operatory between the Infracorp and the asset managers as well as the governance structure by which we are going to execute the mandate of Mr President as nurtured by the promoters,”
What you should know
- InfraCorp is a dedicated privately-managed infrastructure and industrial vehicle that will harness opportunities for Nigeria’s infrastructure development by originating, structuring, executing and managing end-to-end bankable projects in that space.
- Recall that in February 2021, President Muhammadu Buhari approved N1 trillion of seed capital for the Infrastructure Corp. of Nigeria Ltd., which the CBN and its partners initiated and are expected to raise as much as N15 trillion naira for power, road and railway projects in Africa’s largest economy.
- The President had said that InfraCo will be raising funds from the CBN, Nigeria Sovereign Investment Authority, Pension funds, and local and foreign private sector development financiers.
