Nigeria sets up infrastructure company to bridge huge deficit
President Muhammadu Buhari has approved the establishment of an infrastructure company, named Infra-Co, with an initial seed capital of N1 trillion in a bid to bridge the massive infrastructure deficit in the country.
The Federal Government disclosed this on Friday in a statement, saying Infra-Co would be one of the premier infrastructure finance entities in Africa and would be wholly dedicated to Nigeria’s infrastructure development.
It said the entity had been developed with concept designs from the National Economic Council and the Central Bank of Nigeria.
“It is envisaged that, over time, the entity will grow to N15 trillion in assets and capital,” the government said.
The President had asked Vice President Prof. Yemi Osinbajo to chair a steering committee tasked with setting up the company.
The statement said the initial seed capital for the entity will come from the CBN, the Nigeria Sovereign Investment Authority and the Africa Finance Corporation.
It said the board of Infra-Co would be chaired by the CBN Governor and include the Managing Director of NSIA, the President of AFC as well as representatives of Nigerian Governors Forum and Federal Ministry of Finance, Budget and National Planning.
The presidency said the board would also have three independent directors from the private sector.
It said, “To address Nigeria’s infrastructure deficit, the Buhari Administration continues to explore innovative options, including through financing initiatives such as the Presidential Infrastructure Development Fund designed to cater for the 2nd Niger Bridge, Abuja-Kaduna-Zaria-Kano Expressway, and other projects.
“There is also 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 LNG), and the Apapa-Oshodi-Oworonshoki Expressway (with Dangote Group), among others.”
The statement said Infra-Co would finance public asset development, rehabilitation and reconstruction as well as invest in cutting edge infrastructure projects for roads, rail, power and other key sectors.
