Nigeria’s Infrastructure Corporation (InfraCorp), the dedicated N15 trillion capital base privately-managed infrastructure and industrial vehicle designed to harness opportunities for Nigeria’s infrastructure development by originating, structuring, executing and managing end-to-end bankable projects in that space, is set to commence in the third quarter of 2021.
Godwin Emefiele, the CBN governor made this announcement at a webinar organised by the Bureau of Public Enterprise (BPE) in collaboration with the Nigerian Exchange group (NGX) where he revealed that Sovereign Wealth Fund Institute puts the state-owned enterprise current assets at $2.6 billion.
He also said the corporation has received the nod from President Muhammadu Buhari with a capital base of N15 trillion while one of the big four accounting firms, KPMG, has been appointed to function as the transaction advisers for the corporation.
“Work has indeed attained an advanced stage and we have received the approval of the Chairman of the Steering Committee, the Vice President, Professor Yemi Osinbajo, for the approval of the appointment of KPMG as the transaction advisers and only recently we also obtained approval for the appointment of asset managers.
“Following conclusions of these arrangements and further activities, I like to assure all of us that the Infrastructure Corporation of Nigeria is expected to begin full operation by the third quarter of 2021. We believe that through a partnership with the private sector, Infraco will be able to leverage close to N15 trillion over the coming years to close the country’s infrastructure gap,” Emefiele said.
Investments in rail, road infrastructure, manufacturing, agriculture and other areas with significant potential are imperative to transform the growth trajectory of the nation’s economy, said the central bank governor, while further noting that the CBN in conjunction with key stakeholders such as the International Finance Corporation (IFC) and the Nigerian Sovereign Investment Authority (NSIA), secured the approval of the president to establish Infraco to raise private sector capital to support investment in key infrastructure in Nigeria.
“I’m happy to acknowledge that the establishment of the Infrastructure Corporation of Nigeria has generated a lot of interest from both local and international private fund managers who are keen to work with the promoters in deploying private sector capital to support investment in key infrastructure in Nigeria. Giving the current funding constraints of the federal government, leveraging funds from the private sector with the ability to provide operationally and technologically know-how in improving the productivity of critical and moribund assets of the government is extremely essential,” Emefiele said.
He noted that these investments by the private sector in energy, road and rail assets can significantly reduce the cost of doing business in Nigeria while supporting increased investment in the economy.
The virtual event which had in attendance both key stakeholders and heads of key sectors in the Nigerian money and capital market, also had Oscar Onyema, group chief executive officer, NGX Plc, on the platform where he said the capital markets existed to enable efficient allocation of resources to spur growth and development.
The NGX boss also noted that tax was eliminated on stock market transactions in most jurisdictions around the world, and called for further extension of tax waiver on capital market transactions. Onyema said the exchange would continue to reduce transaction costs and boost market participation for investors.
