Just In: Buhari approves formation of N1trn firm to tackle infrastructure deficit

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Buhari approves formation of N1trn firm to tackle infrastructure deficit


 

President Muhammadu Buahri has approved the establishment of a company, Infra-Co, saddled with the responsibility of tackling the nation’s infrastructure deficit.

Laolu Akande, the senior special assistant to the vice president on media and publicity, disclosed this in a statement on Friday titled “President Buhari approves formation of trillion naira company to address infrastructure deficit.”

Akande said the company would take off with an initial seed capital of N1trillion which will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority and the Africa Finance Corporation.

He said Buhari has directed Vice-President Yemi Osinbajo to chair a Steering Committee tasked with setting up the company.

The statement read, “President Muhammadu Buhari has approved the establishment of a Public-Private Partnership styled Infrastructure company named Infra-Co with an initial seed capital of N1trillion.

“It is envisaged that, over time, the entity will grow to N15 trillion in assets and capital.

“Infra-Co 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 and the Central Bank of Nigeria.

“The President had asked Vice President Yemi Osinbajo, SAN, to chair a Steering Committee tasked with setting up the company.

“The initial seed capital for the entity will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation.

“The board of Infra-Co will be chaired by the Central Bank Governor and include the Managing Director of the Nigerian Sovereign Investment Authority, President of the Africa Finance Corporation, as well as representatives of the Nigerian Governors Forum, and the Ministry of Finance, Budget and National Planning. The board will also have three independent directors from the private sector.”

To address Nigeria’s infrastructure deficit, Akande said the present regime would continue to explore innovative options, including through financing initiatives such as the Presidential Infrastructure Development Fund designed to cater for the 2nd Niger Bridge, the Abuja-Kaduna-Zaria-Kano Expressway, and other projects.

He also mentioned 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 the Nigeria Liquefied Natural Gas, NLNG), and the Apapa-Oshodi-Oworonshoki Expressway (with Dangote Group), among others.

“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,” he added.