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CBN, Others Partner to Close Infrastructure Deficit, Raise $37bn

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Godwin Emefiele - Investors King

The Governor, Central Bank of Nigeria, Godwin Emefiele, has said the Infrastructure Corporation of Nigeria is signing an agreement with some public and private sector partners to raise funds to close infrastructure deficit in the country.

He spoke during an event on InfraCorp term sheet signing with independent asset managers in Lagos on Friday.

The CBN said InfraCorp was launched with initial seed capital from the promoters of N1tn ($2.5bn) and aims to raise three times as much in private capital over the next three years, and up to $37bn for infrastructure investments in Nigeria’s economy by 2030.

Emefiele also announced and congratulated Dr. Lazarus Angbazo on his appointment as the pioneer chief executive officer of InfraCorp, as he drives the company to deliver on its mandate to the nation.

He said, “For infrastructure projects originated by the public sector, InfraCorp’s goal is to shape projects for private sector financing and management.

“For projects originated by the private sector, InfraCorp will help shape government policy to support and sustain private sector investment.”

For Nigerian companies to focus successfully on their competencies, he said they needed to be assured of the infrastructure that they rely upon.

“The deficit may be large; however, with resources from the private-sector, targeted incentives from the public sector and the drive of our individual citizens, I strongly believe that Nigeria will be ready, willing and able to deliver the infrastructure that will be the foundation of our development,” he said.

He said the signing event marked a major milestone as InfraCorp and the Infrastructure Asset Managers – the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers in Nigeria, and Sanlam Infraworks-had concluded the initial discussions on how they would operate together to deliver infrastructure to the nation.

Explaining, he said InfraCorp is a government-backed infrastructure investment vehicle established and co-owned by the CBN, Africa Finance Corporation and Nigeria Sovereign Investment Authority (the promoters) and managed by its own board and management.

The vehicle, he said, had been established to harness opportunities for infrastructure development in Nigeria by originating, structuring, executing, and managing end-to-end bankable projects, managed by reputable and highly experienced infrastructure asset managers and in partnership with public and private sector participants.

He said InfraCorp would mainly leverage public-private partnerships to unlock assets for the development and completion of projects.

InfraCorp’s core mandate is to tackle Nigeria’s infrastructure deficit and generate a growth multiplier effect across critical sectors.

By supporting project development, financial structuring, and private-capital mobilisation, InfraCorp would help to combat issues of underemployment and under-investment in critical nation-building assets, according to the CBN.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

CBN Starts Debiting Defaulters of Its Intervention Loans

The Central Bank of Nigeria (CBN) has begun debiting the account of intervention loan defaulters.

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Godwin Emefile

The Central Bank of Nigeria (CBN) has begun debiting the account of intervention loan defaulters.

The apex bank declared this at the last Monetary Policy Committee (MPC) meeting held in Abuja. It further noted that States Governments and smallholder farmers form a large part of the defaulter. 

It will be recalled that the Central Bank disclosed in August that about N791 billion was disbursed to more than 3 million farmers under the Anchor Borrowers’ Program (ABP) and Commercial Agric Credit. 

ABP was launched by Muhammad Buhari on November 17, 2015 to assist Smallholders Farmers. ABP was created to reduce the pains faced by farmers in accessing credit for their operations. It had a single interest rate of nine percent.

Some of the benefiting smallholder farmers are those engaged in the production of rice, maize, wheat, cotton, cassava, potatoes, yam, ginger, oil palm, cocoa, rubber tomatoes, fish and poultry among others.

According to the director of development finance of the CBN, Yusuf Yila, state governments’ monthly federation account allocation committee (FAAC) accruals are already being debited directly every month. He however did not specify the states involved.

“Every person(s) or state that took that loan (ABP) is going to pay. We have their BVN. These persons are smallholder farmers, who received funds for farming. We have started recovering loans from state governments. We have been doing a loan workout programme with them, and we are debiting their monthly Federal Allocation Account (FAAC) accruals directly for the loans”, he stated.

“If a state government has taken N1 billion and is already in default, over six months, we debit them N150 million every month. So, we’ve started that programme.” He continued. So, every single loan that has been given out through any of our intervention programmes must be paid back.” He added

Yila, also mentioned that the CBN has put sentiment aside and is determined to collect the money it is owed. 

 “There is absolutely no mercy. We have started; we are in recovery mode. At the development finance department, we have begun to recover the loans”, he stated.

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Five Million Passengers Used Abuja Airport in 2021

More than five million passengers used Nnamdi Azikiwe International Airport, (NAIA) Abuja, between January and December 2021.

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More than five million passengers used Nnamdi Azikiwe International Airport, (NAIA) Abuja, between January and December 2021.

The Federal Airport Authority of Nigeria (FAAN) has disclosed that 5,323,905 passengers were processed through the Nnamdi Azikiwe International Airport (NAIA) Abuja in 2021. This represents a 37.23 per cent increase from 2020.

Speaking in Abuja at the celebration of the 40th anniversary of the Airport, the Managing Director of FAAN, Captain Hamisu Yadudu noted that the airport continued to wax stronger and higher. 

Captain Hamisu further noted that for easy movement of passengers, the Federal Government has completed and commissioned a world-class, brand-new international terminal. 

“I am glad that the airport has continued to grow in leaps and bounds since then. In the year 2021 for example, a total of 5,323,905 passengers were processed through the airport, which was a whopping 37.23% increase on the year 2020 figures. In terms of the facility upgrade, the airport also has been quite progressive”. The MD stated.

Hamisu also noted that Abuja airport was adjudged the Best Airport in Safety for the year 2018 by Airport Council International, Africa Region while the airport also received ACI’s Airport Service Quality Award in the year 2020, among several others laurels. 

The MD, therefore, laud the contributions of all staff, both past and present, as well as partners and stakeholders for the last 40 years.

Meanwhile, the Regional General Manager/ Airport Manager of NAIA, Abuja, Kabir Mohammed revealed that the Federal Executive Council (FEC) has approved the construction of a new runway at Abuja airport. 

He added that the new runway will come with a new terminal and a new fire station. 

Nnamdi Azikiwe International Airport (NAIA) is one of the most used and functional airports in Nigeria. It was established on the 29th of September, 1982. Sited at the seat of power, the airport is often used by the president, majority of the public office holders, visiting presidents and foreign diplomats. 

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World Bank Approves $750 Million Loan For Nigeria

The World Bank has approved a sum of $750 million to help Nigeria in its efforts to create more jobs. 

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The World Bank has approved a sum of $750 million to help Nigeria in its efforts to create more jobs. 

A statement released by the World Bank on Thursday commended the Nigerian government in its efforts to eliminate constraints in the business environment through the Presidential Enabling Business Environment Council (PEBEC). 

The world bank further noted that although Nigeria’s ability to attract both domestic and international foreign investment remains low when compared to its peers, the country is capable to drive private investment to high growth

According to the statement which was released on Thursday,  the World Bank nonetheless stated that the fund will help Nigeria to accelerate the implementation of critical actions that will improve the business-enabling environment in the country.

Investors King learnt that though Nigeria moved by 38 places on the global ranking of ease of doing business between 2016 and 2019 from 169 to 131, the previous gains seem to have been wiped out after the adverse effect of covid19 and the current economic challenges. 

Similarly, in June 2022, a publication by the World bank also decried the cumbersome customs procedures in Nigeria, especially at the Nigeria port. 

The report stated that Nigeria’s tariffs are among the highest in the world, especially for capital, intermediate and consumer goods. 

In recent times, there has been a series of complaints about the activities of the Nigerian Customs Service which could be detrimental to goods importation. Manufacturers and importers have an alleged arbitrary approach that the Nigeria Custom is using for duty valuation. 

They argued that it was not helpful for Customs to use the Consumer Price Index (CPI) to compute value and charge duty, given the high cost of local production.

Consumer Price Index is used to measure the overall change in consumer prices based on a representative basket of goods and services over time. 

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