President Muhammadu Buhari has approved the establishment of an infrastructure company to be led by the Central Bank of Nigeria, the governor announced on Tuesday.
The company, to be known as Infrastructure Company, Infra-Corp,will address the country’s infrastructure deficit as a way driving growth of the economy. governor Godwin Emefiele, disclosed at the 13th Annual Banking and Finance Conference in Abuja.
Emefiele explained that Infra-Corp would be working in collaboration with the African Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA). He said funding for the company would be pooled from both the public and private sectors.
Nigeria’s stunted economic performance has been blamed in part on the country’s decrepit infrastructure that is incapable of supporting any meaningful level of industrial activity.
“Another critical area that the banking sector ought to consider for stable growth of our economy is Infrastructure finance. “With the decline in revenues due to federal and state government as a result of the drop in crude oil prices, alternative ways of funding infrastructure are critical if we are to generate sustained growth of our economy.
“As we are all aware, the cost of logistics is often seen as a significant impediment to the growth of businesses in the country. “A well-built infrastructure system, comprising hard infrastructures such as roads and ports, and soft infrastructure such as broadband penetration, can have a multiplier effect on growth by enabling the expansion of business activities in the country.
“In this regard, I am pleased to announce that President Muhammadu Buhari has approved the establishment of a CBN led Infrastructure Company.
“Working in partnership with the African Finance Corporation and the Nigerian Sovereign Investment Authority, Infra-Corp would enable the use of private and public capital to support infrastructure investment that will have a multiplier effect on growth across critical sectors.
“This entity would also be able to raise fund from the capital markets and mobilize long term finance to address some of our infrastructure needs while providing reasonable returns to investors. “We believe this well-structured fund can act as a catalyst for growth in the medium and the long run. The support of the banking community will be important in achieving this objective,” Emefiele said.
