July 14, 2021 / 06:19 PM / by NIPC / Header Image Credit: Aso Rock Villa
The N15 trillion Infrastructural Corporation of Nigeria Limited (INFRACO), which the Central Bank of Nigeria, the African Finance Corporation (AFC), Nigeria Sovereign Investment Authority (NSIA) and others organisations are collaborating with the Federal Government to establish, will begin full operations in the Third Quarter of the year.
Vice President Yemi Osinbajo said upon its take-off, with the credibility of the listed promoters and the quantum of funds, the corporation will meet the infrastructural needs of the economy through Public Private Partnership (PPP).
He spoke in a webinar that the Bureau of Public Enterprises (BPE) and the Nigerian Export Promotion Council organised on Tuesday in Abuja.
He said: "The Federal Government through the Central Bank of Nigeria (CBN) through the NSIA and the African Finance Corporation among others are collaborating to establish a N15 trillion Infrastructure fund under the auspices of INFRACO.
"From the CBN speech a moment ago, we heard a date about the INFRACO. We have several laws to protect investment in Nigeria."
"We believe that with the credibility of the actors that rally the CBN, NSIA, AFC and the quantum of resources that would be deployed, the INFRACO will make a major contribution to meeting the infrastructrural needs of the Nigerian economy while promoting public-private partnership".
He assured the over 850 participants at the conference that the Federal Government of Nigeria is strongly committed to this approach for national economic development.
He considered it an important measure to create enabling an environment for the required and much needed investment.
Also, in his remarks, the CBN Governor, Mr. Godwin Emiefele, said works on the corporation have reached an advanced stage.
According to him, the Vice President has approved the appointment of KPMG as the transaction adviser of the corporation. Another appointment that was approved is that of an asset manager.
The apex bank Governor said: "We have received the approval of the Osinbajo for the appointment of KPMG as the transaction adviser and also still recently we also obtained approval for the appointment of asset managers.
"So, following this arrangement and other activities, I am glad to assure all of us that the Infrastructure Corporation of Nigeria is expected to begin full operations by the Third Quarter of 2021.
We believe that through partnership with the private sector, INFRACO will be able to leverage N15 trillion over the coming which will help to close gap on our infrastructure funding needs and help to catalyse growth in key sectors of our economy".
He noted that some analyists had estimated that over N350trillion was needed to support Infrastructure improvement in Nigeria over the next 10 years.
Emiefele said if these investments were made, Nigeria is to achieve a Gross Domestic Product (GDP) growth by 10% yearly.
According to him, it will be difficult to support these investments using government resources alone, which has necessitated a viable PPP.
In his welcome remarks, the BPE Director-General, Mr. Alex Okoh, said the Bureau 2021 work plan includes sales and concession of power generation assets that can add 3,300mw to the national grid.
In a sideline interview with reporters at the BPE, Abuja, he explained that the investments opportunities in the country were very huge.
He said the forum was to expose the opportunities to the various local and international investors to take the advantage the of them.
Okoh said the signing of share purchase agreement with the core investors for the Yola Electricity Distribution Company could not hold on Monday.
He said for some reasons the company and BPE are trying to resolve, they will sign the agreement in the next couple of days.