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

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.