Nigeria’s N15 trillion capital base infrastructure Corporation (Infracorp) to commence operation in the third quarter of 2021, Godwin Emefiele, the Central Bank Governor announced at a webinar organised by the Bureau of Public Enterprise (BPE) in collaboration with the Nigerian Exchange group (NGX).
According to the Central Bank document, InfraCorp is a dedicated 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.
Sovereign Wealth Fund Institute puts the state-owned enterprise current Assets at $2,600,000,000. Speaking at the webinar titled ‘Showcasing the investment opportunities in Nigeria’s privatisation and economic reform programme’, Emefiele said the corporation has gotten President Muhammadu Buhari approval with a capital base of N15 trillion.
According to Emefiele, Infracorp would be fully operational before the end of the third quarter of the year. The CBN Governor added that one of the big four accounting firms, KPMG, had been appointed as the transaction advisers for the Corporation.
The CBN Chief said, “work has indeed attained an advanced stage and we have received the approval of the Chairman of the Steering Committee, the Vice President, Prof. 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,” the governor said.
He noted that the apex bank, with key stakeholders such as the International Finance Corporation and the Nigerian Sovereign Investment Authority, 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,” he said.
According to him, 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.
“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.
“Furthermore, 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 of our economy,” Emefiele added.
Also speaking, Group Chief Executive Officer, NGX Plc, Mr. Oscar Onyema, said the capital markets existed to enable efficient allocation of resources to spur growth and development.
Onyema who noted that tax was eliminated on stock market transactions in most jurisdictions around the world called for further extension of tax waiver on capital market transactions.
He said the exchange would continue to reduce transaction costs and boost market participation for investors.