President Muhammadu Buhari has approved the establishment of a Public Private Partnership-styled infrastructure company named Infra-Co with an initial seed capital of N1 trillion.
It is envisaged that, over time, the entity will grow to N15 Trillion in assets and capital, according to a statement Friday by The Presidency.
Infra-Co, the statement said, will be one of the premier infrastructure finance entities in Africa and will be wholly dedicated to Nigeria’s infrastructure development. The entity has been developed with concept designs from the National Economic Council (NEC) and the Central Bank of Nigeria (CBN).
“The President had asked Vice President Prof Yemi Osinbajo to chair a Steering Committee tasked with setting up the company. The initial seed capital for the entity will come from the CBN, Nigeria Sovereign Investment Agency (NSIA) and the Africa Finance Corporation (AFC).
“The board of Infra-Co will be chaired by the Central Bank of Nigeria Governor and include the Managing Director of Nigeria Sovereign Investment Agency; President, Africa Finance Corporation, as well as representatives of Nigerian Governors Forum (NGF) and Ministry of Finance. The Board will also have three independent directors from the private sector.
“To address Nigeria’s infrastructure deficit, the Buhari Administration continues to explore innovative options, including through financing initiatives such as the Presidential Infrastructure Development Fund designed to cater for the second Niger Bridge, Abuja-Kaduna-Zaria-Kano Expressway, and other projects.
“There is also the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme which is being used for the funding of the Bodo-Bonny Bridges and Road (with Nigeria Liquified Natural Gas), and the Apapa-Oshodi-Oworonshoki Expressway (with Dangote Group), among others,” the statement elaborated.
It added that Infra-Co will finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for Roads, Rail, Power and other key sectors.