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CBN, others partner to the close infrastructure gap and raise $37 bn

THE Governor of the Central Bank of Nigeria Godwin Emefiele, has revealed that the Infrastructure Corporation of Nigeria is negotiating a deal with various public and private sector partners to raise cash to close the country’s infrastructure deficit.

Yesterday, he spoke at a ceremony in Lagos about InfraCorp term sheet signing with independent asset managers.

According to the CBN, InfraCorp was founded with N1 trillion ($2.5 billion) in seed capital from its sponsors and hopes to raise three times that amount in private capital over the next three years, totaling up to $37 billion for infrastructure developments in Nigeria’s economy by 2030.

Emefiele also commended Dr. Lazarus Angbazo on his appointment as the business’s pioneer chief  executive officer, as he leads the company to fulfill its national mandate.

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.”

He stated that for Nigerian businesses to be able to focus on their core capabilities, they must have confidence in the infrastructure they rely on.

“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 explained that InfraCorp is a government-backed infrastructure investment company that is administered by its own board and management and is co-owned by the CBN, Africa Finance Corporation, and Nigeria Sovereign Investment Authority (the promoters).

He explained that the vehicle was created to capitalize on opportunities for infrastructure development in Nigeria by originating, structuring, executing, and managing end-to-end bankable projects, which would be managed by reputable and experienced infrastructure asset managers in collaboration with public and private sector participants.

InfraCorp, he said, would primarily use public-private partnerships to unlock assets for project development and completion.

The primary goal of InfraCorp is to address Nigeria’s infrastructure deficit and generate a growth multiplier effect in key areas.

According to the CBN, InfraCorp would help to tackle issues of underemployment and underinvestment in important nation-building assets by supporting project development, financial structure, and private-capital mobilization.

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